Primary Credit Is Only a Backup Source of Funds for Healthy

question 53

Multiple Choice

Primary credit is only a backup source of funds for healthy banks since

• A) the primary credit rate is set above the federal funds rate.
• B) restrictions as to its use limit its benefits.
• C) the secondary credit rate pays 0.5% more.
• D) banks must seek funds from other sources prior to requesting a discount loan.

---

Definitions:

Vulnerability

The quality or state of being exposed to the possibility of being attacked or harmed, either physically or emotionally.

Suicide

Voluntarily causing one's own demise.

Loss of a Loved One

The experience of grief and mourning following the death of someone significant in one's life.

Lithium

A mood-stabilizing drug often prescribed for the treatment of bipolar disorder, helping to reduce the frequency and severity of manic episodes.