The discount window is the branch of the Bank of Canada that monitors banks to be sure that they are meeting reserve and capital requirements.

Question

Quizplus · Accepted Answer

The discount window is actually a lending facility that allows banks to borrow money from the central bank in the event of a temporary shortage of liquidity. The Bank of Canada still monitors banks to ensure they are meeting reserve and capital requirements, but this is not the specific function of the discount window.

The Discount Window Is the Branch of the Bank of Canada