The Discount Window
A) is a common way for depository institutions to raise loanable funds
B) relates to the Fed's "lender of last resort" function
C) is a relatively recent innovation in the design of the Federal Reserve System
D) is available only during emergencies

Question

Quizplus · Accepted Answer

The Discount Window is a tool used by the Federal Reserve to provide liquidity to banks, acting as a "lender of last resort" to ensure stability in the financial system.