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Author Question: When does the Fed lend through discount windows? What will be an ideal ... (Read 69 times)

luvbio

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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.



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Sassygurl126

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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



luvbio

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Sassygurl126

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Great! Please up vote :D



 

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