Banks in good condition may take out a ________ from the Fed.
A)secondary credit discount rate
B)Fed funds loan
C)primary credit discount rate
D)class A loan

Question

Quizplus · Accepted Answer

Banks in good condition can take out a loan known as the primary credit discount rate from the Federal Reserve. This loan is available at a lower interest rate than the secondary credit discount rate, which is intended for banks in weaker financial condition. The Fed funds loan and class A loan are not commonly used terms in the context of borrowing from the Federal Reserve.

Banks in Good Condition May Take Out a ________ from the Fed