Question

The Fed offers three types of discount window loans. ________ credit is offered to small institutions with demonstrable patterns of financing needs, ________ credit is offered for short-term temporary funds outflows, and ________ credit may be offered at a higher rate to troubled institutions with more severe liquidity problems.

Answer 1

Answer:

The answer options to this question are as follows:

to. Seasonal; extended; adjustment

b. Extended; adjustment; seasonal

c. Adjustment; extended; seasonal

d. Seasonal; primary; secondary

and. Adjustment; seasonal; extended

The correct answer is d. Seasonal; primary; secondary.

Explanation:

Seasonal credit is a freely available credit. Seasonality is a concept frequently used in the economic study. It assumes that a large part of the economic variables experience regular fluctuations or changes over time, which makes them predictable and facilitates their temporal study.

The fact that the aforementioned regular variations occur makes many aspects of the present day to be expected. That is, patterns of behavior are often formed in historical series that can be classified in periods of time and that show the evolution of some economic aspect, such as the demand for goods or services, supply, consumption, employment data. , prices, among others.

Primary credit, also known as net internal credit, refers to the financing that the Central Bank provides to residents in the country less the liabilities that it has in favor of these. It is obtained from the difference between the amount of the monetary base and that of net international assets.

Whereas sequential credit is issued on the basis of other credit, for example, a back to back credit.