Because the Fed controls the amount of required reserve assets that depository institutions must hold, it also operates a lending facility called the

Question

Quizplus · Accepted Answer

The Fed's lending facility for depository institutions is called the discount window. It allows these institutions to borrow reserves from the Fed when they are in need of funds to meet reserve requirements or other short-term liquidity needs. The other choices (fair lending window, open market window, and stabilization window) are not actual facilities offered by the Fed.

Because the Fed Controls the Amount of Required Reserve Assets