Which of the following can banks use to borrow from the Federal Reserve?
A)the discount window or the term auction facility
B)the discount window but not the term auction facility
C)the term auction facility but not the discount window
D)Banks cannot borrow from the Federal Reserve,only the government can.

Question

Quizplus · Accepted Answer

Banks can borrow from the Federal Reserve through both the discount window and the term auction facility. The discount window is a facility that allows banks to borrow from the Federal Reserve at a discount rate, while the term auction facility is a program where the Federal Reserve auctions funds to banks for a specified term.

Which of the Following Can Banks Use to Borrow from the Federal