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.
Correct Answer:
Verified
Q85: The regulation that sets the minimum fraction
Q108: The reserve requirement is:
A) the regulation that
Q109: The discount window is a:
A) lending facility
Q110: If the Fed wanted to decrease the
Q111: Compared to the other tools the Fed
Q113: Which of the following tools is used
Q114: In order to change the money supply,
Q115: The interest rate charged for loans through
Q116: The discount rate is typically:
A) higher than
Q117: The discount window provides:
A) guaranteed emergency funds
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents