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3. Gold Bank is a depository institution that suffers from a lack of liquidity. Would the bank be eligible for primary credit? No, because only

3. Gold Bank is a depository institution that suffers from a lack of liquidity. Would the bank be eligible for primary credit?

No, because only financially strong institutions with ample capital are allowed to borrow from the Fed in primary credit.

Yes, because depository institutions that had exhausted all of their other sources of funds can borrow money at the discount window in primary credit.

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