Why is access to the discount window of the Fed less of a deterrent to bank runs

Question:

Why is access to the discount window of the Fed less of a deterrent to bank runs than deposit insurance?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Institutions Management A Risk Management Approach

ISBN: 978-0071051590

8th edition

Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders

See More Books

Question Posted: Dec 17, 2015 05:05 AM

See More Questions

Describe the unprecedented steps the Federal Reserve took with respect to the discount window operations during the financial crisis.
Why was the Term Auction Facility more widely used by financial institutions than the discount window during the global financial crisis?
1. How does information technology affect socioeconomic disparities? Explain your answer. 2. Why is access to technology insufficient to eliminate the digital divide? 3. How serious a problem is the...
Fill in the missing mass number and atomic number for each of these particles or types of radiation. alpha (?) He beta (?) e gamma y neutron n
Why are acquired resources integrated into a company in so many different forms? What transaction-specific circumstances might lead to a preference of one integrative form over another?
In a study of the Gender Aide method of gender selection used to increase the likelihood of a baby being born a girl, 2000 users of the method gave birth to 980 boys and 1020 girls. There is about a...
Under appropriate conditions, water flowing from a faucet, onto a flat plate, and over the edge of the plate can produce a circular hydraulic jump as shown in Fig. P10.77 and Video V10.12. Consider a...
On January 1, 2013, Cook Textiles leased a building with two acres of land from Peck Development. The lease is for 10 years. No purchase option exists and the property will revert to Peck at the end...
Based on your interpretation of the discussion about the 4 Eras of the US healthcare system, you will provide an opinion about whether or not you believe the US healthcare system is moving into a 5th...
1. McCutchon wrote a check payable to cash while he was in a supermarket. Before he got to the cashier, he realized that he had lost the check. Is this a bearer instrument, payable to any holder? 2....
How does the Federal Reserves discount window serve as an alternative to deposit insurance as a lender of last resort facility to financial institutions? What changes occurred in 2008 that expanded...
How do insurance guaranty funds differ from deposit insurance? What impact do these differences have on the incentive for insurance policyholders to engage in a contagious run on an insurance company?
The chapter provides an example dummy table for the Deland Trucking vignette. Provide another example dummy table that corresponds to this same situation.
A car manufacturer announced that next year the price of a certain model car would increase by 4.5%. This year the price is $15,123. Find the increase and the new price
Outstanding bonds were issued to acquire capital assets and restricted assets total $ 6 4 2 0 0 0 for government activities and $ 2 2 0 0 0 0 for business type activities. how do you adjust the net...
Evaluate the function k (x)=3x - 2x for the given value of x. Simplify your answer. -
Issue 1 Les Repas de Grand-mre is a ready-to-cook meal manufacturing company based in Caraquet, which uses fresh, local and Quebec ingredients to prepare traditional dishes. The packaging comes from...
For the following function find (a) f(4), (b) f (c) f(a), (d) f and (e) any values of x such that f(x) = 1. f(x)=5x-50x+121 (a) Find the value of f(4). 1(4)= (b) Find the value of f (-2)=(Type an...
The polar coordinates of a point are given. Plot the point and find the corresponding rectangular coordinates for the point. (-2, -2.45)
B.) What is the approximate concentration of free Zn 2+ ion at equilibrium when 1.0010 -2 mol zinc nitrate is added to 1.00 L of a solution that is 1.080 M in OH - . For [Zn(OH) 4 ] 2- , K f = 4.610...
Kalewood Savings Bank has experienced recent changes in the composition of its deposit. What changes have recently occurred in Kalewoods deposit mix? Do these changes suggest possible problems for...
First Metrocentre Bank posts the following schedule of fees for its household and small-business transaction accounts: (For average monthly account balances over $1,500, there is no monthly...
Fine-Tuned Savings Association finds that it can attract the following amounts of deposits if it offers new depositors and those rolling over their maturing CDs at the interest rates indicated below:...
1. What is difference between Torque and Force? Explain with one example of each. 2. What is difference between linear momentum and angular momentum? Explain with one example of each. 3(a) What is...
On August 30, JumpStart paid the following expenses: August rent, $2,300 August's utility bill, $525 Employee wages, $1,750 Parking lot cleaning fee, $27 Journalize these payments as one journal...
A 700 g ball strikes a wall at 15.1 m/s and rebounds at 14.4 m/s. The ball is in contact with the wall for 0.034 s. What is the magnitude of the average force acting on the ball during the collision?...

Why is access to the discount window of the Fed less of a deterrent to bank runs

Question:

Step by Step Answer:

Although banks have access to the discount window in the event of DI ...View the full answer

Financial Institutions Management A Risk Management Approach

Students also viewed these Banking questions