The Fed's discount lending is of three types: ________ is the most common category;________ is given to a limited number of banks in vacation and agricultural areas;________ is given to banks that have experienced severe liquidity problems.
A)seasonal credit;secondary credit;primary credit
B)secondary credit;seasonal credit;primary credit
C)primary credit;seasonal credit;secondary credit
D)seasonal credit;primary credit;secondary credit

Question

Quizplus · Accepted Answer

Primary credit is the most common category of the Fed's discount lending, seasonal credit is given to a limited number of banks in vacation and agricultural areas, and secondary credit is given to banks that have experienced severe liquidity problems.

The Fed's Discount Lending Is of Three Types: ________ Is