Question

A bank deemed to be financially not healthy may take out a loan under close Federal...

A bank deemed to be financially not healthy may take out a loan under close Federal Reserve scrutiny. Such a loan is known as

-primary credit discount loan

-secondary credit discount loan

-covenant

Homework Answers

Answer #1

A bank deemed to be financially not healthy may take out a loan under close Federal Reserve scrutiny. Such a loan is known as secondary credit discount loan.

Explanation:

secondary credit discount loan is a loan made by the Fed to a bank that is not highly rated or the banks in trouble, under which the Fed carefully scrutinizes the purpose of the loan and the ability of the bank to repay the loan; the secondary credit discount rate is 1/2 percentage points higher than the rate of primary credit.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1-The United States has a dual banking system, which means that a bank A-may take out...
1-The United States has a dual banking system, which means that a bank A-may take out a primary credit discount loan or a secondary credit discount loan. B-may hold its reserves either in the form of vault cash or as deposits at a Federal Reserve Bank. C-has two regulators. D-may be chartered by federal government authorities or by a state government. 2-The funds used to pay for FDIC insurance coverage come from A-taxes imposed on interest income. B-U.S. government tax...
Monetary Policy set by the Federal Reserve directly impacts the amount of money a bank may...
Monetary Policy set by the Federal Reserve directly impacts the amount of money a bank may loan out because the “Fed” _____. Group of answer choices: sets reserve requirements insures that loans are repaid clears all loan payments prints new money
When a bank repays a loan at the discount window to the Federal Reserve, it will...
When a bank repays a loan at the discount window to the Federal Reserve, it will __________ the monetary base by __________ bank reserves. Select one: a. decrease; decreasing b. increase; decreasing c. decrease; increasing d. increase; increasing The securities that the Federal Reserve holds on its balance sheet include Select one: a. ?US Treasury securities, federal agency debt, and privately issued mortgage-backed securities. b. ?privately issued stocks, US Treasury securities, and federal agency debt. c. municipal bonds, privately issued...
Whatever It Takes: How the Fed Aims to Rescue the Economy The central bank is using...
Whatever It Takes: How the Fed Aims to Rescue the Economy The central bank is using tactics from the last financial crisis and deploying new ones to keep money flowing. Here are the basics. The Federal Reserve, under Jerome H. Powell, is moving to shore up the American economy during the coronavirus pandemic. Credit...Yuri Gripas/Reuters By Ben Casselman March 23, 2020 The Federal Reserve on Monday pledged to do, in essence, whatever it takes to keep the economy from collapsing...
Grab the "best hits" of information out of the document and write a summarizing 1 page....
Grab the "best hits" of information out of the document and write a summarizing 1 page. Information received since the Federal Open Market Committee met in January indicates that the labor market has continued to strengthen and that economic activity has been rising at a moderate rate. Job gains have been strong in recent months, and the unemployment rate has stayed low. Recent data suggest that growth rates of household spending and business fixed investment have moderated from their strong...
QUESTION: Why do governments typically take an unsupportive stance on countertrade arrangements? Article Below: The Bell...
QUESTION: Why do governments typically take an unsupportive stance on countertrade arrangements? Article Below: The Bell Boeing V-22 Program, a strategic alliance between Bell Helicopter, a Textron Company, and the Boeing Company,1,2 announced the V-22 Osprey tiltrotor will be featured at the Dubai International Air Show in the United Arab Emirates (UAE) from November 13 to 17, 2011. The Air Show, held biennially, is organized in cooperation with the government of Dubai, the Department of Civil Aviation, and Dubai International...
Please don't copy and paste from other website. Outline the key fiscal and monetary policy actions,...
Please don't copy and paste from other website. Outline the key fiscal and monetary policy actions, respectively, of New Zealand against the COVID-19 shocks(already outlined below) use appropriate macroeconomic models and theories covered in this course to explain their expected impacts. Discuss any limitations of these policy actions. (~600 words) TIPS: ⮚ If there are many policy actions, you could list all of them but focus on the key ones for discussion. ⮚ The government may take multiple actions (e.g....
QUESTION 1 All of the followings are the rights and privileges of a Common Stockholders EXCEPTING:...
QUESTION 1 All of the followings are the rights and privileges of a Common Stockholders EXCEPTING: a. Voting/Proxy Rights b. Right to Dividends c. Residual Right d. Pre-emptive Right e. Right to Interest Payments 10 points    QUESTION 2 Your best friend's parents want to buy a home in the Worcester County, but they don’t know the exact amount of money that they can afford to borrow. They can afford monthly payments of $ 1,800. A friendly bank in Worcester...
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...
Discuss ethical issues that can be identified in this case and the mode of managing ethics...
Discuss ethical issues that can be identified in this case and the mode of managing ethics Enron finds itself in this case. How would you describe the ethical culture and levels of trust at Enron? Provide reasons for your assessment. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among...