Which of the following is false?
A) The discount rate is the interest rate the Fed charges depository institutions for borrowing reserves from their district Reserve Bank.
B) Institutions are encouraged to borrow reserves frequently from the Fed.
C) To preserve the public's confidence in the safety and soundness of the financial system, the Fed will lend for an extended period to an institution experiencing severe difficulties.
D) The Fed is the lender of last resort.
Correct Answer:
Verified
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