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Banks Historically Have Used the Discount Window

Question 112

Multiple Choice

Banks historically have used the discount window:


A) sparingly, because it is often seen as a sign of financial trouble for a bank.
B) often, because it provides instant access to needed funds for banks.
C) often, because its low interest rate can serve as a source of profit for banks.
D) only during times of economic boom, when there is a high demand for loans.

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