Use your knowledge of the problems associated with asymmetric information to explain why, prior to the change

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Use your knowledge of the problems associated with asymmetric information to explain why, prior to the change in the Federal Reserve’s discount lending facility in 2002, banks were extremely unlikely to borrow from the facility despite funds being available at a rate below the target federal funds rate?

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Money Banking and Financial Markets

ISBN: 978-0078021749

4th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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