Which of the following institutions is not eligible to borrow from the Federal Reserve at the discount rate?
A) Federal government
B) Commercial banks
C) Credit unions
D) Mutual savings banks

Question

Quizplus · Accepted Answer

The Federal Reserve Act prohibits lending to the federal government at the discount rate to ensure the central bank maintains its independence from the government. Commercial banks, credit unions, and mutual savings banks are all eligible to borrow from the Federal Reserve at the discount rate.

Which of the Following Institutions Is Not Eligible to Borrow