If a bank has a deficiency of reserves, the Federal Reserve would allow it to use:
A) fed funds
B) the discount window
C) bankers' acceptance
D) none of the above

Question

Quizplus · Accepted Answer

The Federal Reserve allows banks with a deficiency of reserves to use the discount window as a means to borrow reserves directly from the central bank. This helps banks manage short-term liquidity needs.

If a Bank Has a Deficiency of Reserves, the Federal