Author Question: When does the Fed lend through discount windows? What will be an ideal ... (Read 71 times)

luvbio · **on:** Jun 30, 2018

When does the Fed lend through discount windows?

What will be an ideal response?

Question 2

The transactions approach to measuring money stresses the role of money as a

A) store of value. B) unit of accounting.
C) medium of exchange. D) standard of deferred payment.

Sassygurl126 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

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.

Answer to Question 2

C