The Lending Facility That Allows Any Bank to Borrow Reserves

question 35

Multiple Choice

The lending facility that allows any bank to borrow reserves from the Fed is called the:

• A) discount window.
• B) reserve window.
• C) reserve rate.
• D) borrower of last resort.

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Definitions:

Exchange Rate

The price of one currency expressed in terms of another currency, determining how much of one currency can be exchanged for another.

Canadian Dollars

The official currency of Canada, represented by the symbol CAD.

Trading Securities

Financial instruments like stocks or bonds held by a firm, primarily for the purpose of selling them in the near term to realize a gain.

Long-term

Pertaining to or occurring over an extended period, often exceeding one year, in the context of investments, loans, or planning.