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Author Question: When does the Fed lend through discount windows? What will be an ideal ... (Read 40 times)

luvbio

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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.


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Sassygurl126

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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


luvbio

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Reply #2 on: Jun 30, 2018
Correct answers!


Sassygurl126

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Reply #3 on: Jun 30, 2018
Great! Please up vote :D


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