The discount rate is usually above the federal funds rate because the Fed wants to discourage discount window borrowing.
Correct Answer:
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Q56: No loan from the Fed's discount window
Q57: Borrowing from the Fed's discount window reduces
Q58: There are no options available to banks
Q59: According to your text, borrowing from the
Q60: Regardless of the nature of the loan
Q62: The Fed exerts some control over the
Q63: If the federal funds rate drops below
Q64: When a bank repays a loan obtained
Q65: Most discount window loans require the bank
Q66: Banks borrow at the discount window only
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