Question: In January 2 0 0 3 , the Fed implemented changes to its discount window lending that decreased the cost of borrowing but tightened the

In January

2003,

the Fed implemented changes to its discount window lending that decreased the cost of borrowing but tightened the terms. With the change, discount window loans to healthy banks would be priced at

1

percent below the fed funds rate rather than above as it generally was in the period preceding January

2003 .

True False

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