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A Bank Borrowing from the Fed Is Said to Use

Question 16

Multiple Choice

A bank borrowing from the Fed is said to use the ________, and these loans are backed by the bank's collateral. The rate of interest on these loans is the ________.


A) discount window; LIBOR rate
B) open market operations; discount rate
C) Fed window; discount rate
D) discount window; repo rate

Correct Answer:

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