When does the Fed lend through discount windows?
What will be an ideal response?
The Fed lends through the discount window to provide short term liquidity to banks. Banks use the discount window when they cannot find a lender in the federal funds market. Such lending occurs frequently during financial crises.
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U.S. nominal GDP: a. has historically increased more slowly than real GDP. b. has historically increased more rapidly than real GDP. c. includes an estimate of the value of leisure time
d. includes an estimate of underground productive activity.
When small changes in price lead to infinite changes in quantity demanded, demand is perfectly
a. elastic, and the demand curve will be horizontal. b. inelastic, and the demand curve will be horizontal. c. elastic, and the demand curve will be vertical. d. inelastic, and the demand curve will be vertical.