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Management · Q442

International Finance and Treasury

Graduate and Post Graduate · Management · question 442

Q442

Operating tool used by Federal Reserve to influence supply of bank to control demand and supply of repurchase agreements is classified as

A.
selling window
B.
buying window
C.
premium window
D.
discount window
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Operating tool used by Federal Reserve to influence supply of bank to control demand and supply of repurchase agreements is classified as discount window. The discount window is a central bank lending facility meant to help commercial banks manage short-term liquidity needs.