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Wide Bank is a depository institution that suffers from a lack of liquidity. Would the bank be eligible for secondary credit? Yes, because a depository
Wide Bank is a depository institution that suffers from a lack of liquidity. Would the bank be eligible for secondary credit?
Yes, because a depository institution that suffers from a lack of liquidity can borrow funds from the discount window and thereby obtain
secondary credit.
No because only financially strong institutions with ample capital can borrow at the discount window and thereby obtain secondary
credit.
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