To obtain a discount loan from the Fed, a commercial bank must:
A. Prove that it will fail if it does not obtain the loan.
B. Prove that the loan will be used to make loans.
C. Provide collateral.
D. All of the above.
Answer:C
To obtain a discount loan from the Fed, a commercial bank must:
A. Prove that it will fail if it does not obtain the loan. B. Prove that the loan will be used to make loans. C. Provide collateral. D. All of the above.