Discount loans intended for banks that are not financially healthy are called

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Secondary credit is a discount loan intended for banks that are not financially healthy, but not necessarily in danger of insolvency. These loans are offered at a higher interest rate than primary credit. Primary credit (option A) is a discount loan for healthy banks, seasonal credit (option C) is a discount loan offered to smaller banks to help them manage seasonal fluctuations in their reserves, and repo loans (option D) are not discount loans but rather a form of short-term borrowing.

Discount Loans Intended for Banks That Are Not Financially Healthy