Banks might not borrow at the discount window for fear that such borrowing will be viewed as a sign of weakness.

Name: Banks might not borrow at the discount window for fear that such borrowing will be viewed as a sign of weakness.
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Question

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Banks might hesitate to borrow from the discount window because it could be viewed as a sign that they are having financial difficulties, which could harm their reputation and ability to attract investors.

Banks Might Not Borrow at the Discount Window for Fear