Question: 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

How does the Federal Reserve’s 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 the scope of coverage for the Fed’s discount window?

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Traditionally the Fed has provided a discount window facility to meet the shortterm nonpermanent liquidity needs of DIs For example suppose a DI has an unexpected deposit drain close to the end of a r... View full answer

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