The primary reason the Fed makes discount loans to banks is to

Name: The primary reason the Fed makes discount loans to banks is to
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The primary reason the Fed makes discount loans to banks is to help banks overcome short-term liquidity problems. This is intended to ensure the stability of the banking system and prevent potential bank failures. The other options listed may be secondary benefits or consequences of discount loans, but they are not the primary reason for making such loans.

The Primary Reason the Fed Makes Discount Loans to Banks