19-50 The discount window at the Federal Reserve is a suitable substitute for deposit insurance and a possible method of preventing bank runs.

Question

Quizplus · Accepted Answer

The discount window provides short-term loans to banks to maintain liquidity, but it does not replace deposit insurance, which protects depositors' funds and prevents bank runs by ensuring that deposits are safe even if a bank fails.

19-50 the Discount Window at the Federal Reserve Is a Suitable