Although the Federal Reserve had traditionally made discount loans only to commercial banks,in response to the financial crisis in 2008 the Fed made ________ eligible for discount loans as well.

Question

Quizplus · Accepted Answer

In response to the financial crisis in 2008, the Federal Reserve made primary dealers eligible for discount loans in addition to commercial banks. Primary dealers are brokers or dealers who trade securities directly with the Federal Reserve Bank of New York.

Although the Federal Reserve Had Traditionally Made Discount Loans Only