The Fed Offers Three Types of Discount Window Loans

question 5

Multiple Choice

The Fed offers three types of discount window loans. ________ credit is offered to small institutions with demonstrable patterns of financing needs,________ credit is offered for short-term temporary funds outflows,and ________ credit may be offered at a higher rate to troubled institutions with more severe liquidity problems.

• A)Seasonal; extended; adjustment
• B)Extended; adjustment; seasonal
• C)Adjustment; extended; seasonal
• D)Seasonal; primary; secondary
• E)Adjustment; seasonal; extended

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Definitions:

Good News

Information or announcements that are positive, uplifting, or beneficial to the receiver, often leading to a pleasant or optimistic reaction.

Bad-news Message

Communication that conveys disappointing, unfavorable, or negative information to the recipient.

Routine Request

A common or regularly occurring appeal or inquiry that follows a standard procedure or format.

Generic Closing

A nonspecific conclusion or sign-off used at the end of a communication that does not tailor to the recipient or context specifically.