____ credit extended by the Fed to financial institutions may be used for any purpose and is available only to depository institutions that satisfy specific criteria reflecting financial soundness.
A)Primary
B)Secondary
C)Tertiary
D)None of the above

Question

Quizplus · Accepted Answer

The credit extended by the Fed to financial institutions that may be used for any purpose and is available only to depository institutions that satisfy specific criteria reflecting financial soundness is known as primary credit. Secondary credit is also extended by the Fed to depository institutions that are not eligible for primary credit, but with higher interest rates and additional requirements. Tertiary credit is used for emergency situations and carries the highest interest rates and most extensive requirements.

____ Credit Extended by the Fed to Financial Institutions May