A primary advantage for a depository institution of belonging to the Federal Reserve System is

Question

Quizplus · Accepted Answer

Belonging to the Federal Reserve System gives depository institutions access to the discount window of the Fed, which allows them to borrow funds. This can be very beneficial in times of liquidity shortages or other financial stress. Direct access to correspondent banking services and lower required deposit reserves may also be advantages, but they are not as significant as the access to the discount window. Commission trading of U.S. government securities is not a benefit of belonging to the Federal Reserve System.

A Primary Advantage for a Depository Institution of Belonging to the Federal