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The Discount Window Is A

Question 118

Multiple Choice

The discount window is a:


A) lending facility that allows any bank to borrow reserves from the Fed.
B) lending facility that banks can use at specified times to borrow reserves needed to meet reserve requirements.
C) large banking transaction that is associated with lower risk, and therefore qualifies for lower interest rates.
D) situation in which large banks offer a lower interest rate to attract more borrowers.

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