For which of the following are member banks allowed borrowing at the Fed's discount window?
A) funds to purchase securities
B) funds to meet depositor withdrawal demands
C) to invest in subsidiaries
D) to loan to other banks

Question

Quizplus · Accepted Answer

Member banks are allowed to borrow at the Fed's discount window primarily for short-term needs, such as meeting depositor withdrawal demands. This facility is not intended for investment purposes, purchasing securities, investing in subsidiaries, or lending to other banks.

For Which of the Following Are Member Banks Allowed Borrowing