The Fed offers three types of discount window loans. ________ credit is offered to small institutions with demonstrable patterns of financing needs,________ credit is offered for short-term temporary funds outflows,and ________ credit may be offered at a higher rate to troubled institutions with more severe liquidity problems.

Question

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Seasonal credit is for small institutions with predictable financing needs, primary credit is for short-term temporary funds outflows, and secondary credit is for troubled institutions with severe liquidity issues.

The Fed Offers Three Types of Discount Window Loans