The discount window is:
A)a lending facility that allows any bank to borrow reserves from the Fed.
B)a lending facility that banks can use at specified times to borrow reserves needed to meet reserve requirements.
C)a term used for large banking transactions that are associated with lower risk,and therefore qualify for lower interest rates.
D)None of these is true.

Question

Quizplus · Accepted Answer

The discount window is a facility provided by the Federal Reserve that allows banks to borrow reserves on a short-term basis to meet reserve requirements or to manage liquidity.

The Discount Window Is