Why is access to the discount window of the Fed less of a deterrent to bank runs

Question:

Why is access to the discount window of the Fed less of a deterrent to bank runs than deposit insurance?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Institutions Management A Risk Management Approach

ISBN: 978-0071051590

8th edition

Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders

See More Books

Question Posted: Dec 17, 2015 05:05 AM

See More Questions

Describe the unprecedented steps the Federal Reserve took with respect to the discount window operations during the financial crisis.
Why was the Term Auction Facility more widely used by financial institutions than the discount window during the global financial crisis?
1. How does information technology affect socioeconomic disparities? Explain your answer. 2. Why is access to technology insufficient to eliminate the digital divide? 3. How serious a problem is the...
Fill in the missing mass number and atomic number for each of these particles or types of radiation. alpha (?) He beta (?) e gamma y neutron n
Why are acquired resources integrated into a company in so many different forms? What transaction-specific circumstances might lead to a preference of one integrative form over another?
Based upon data from the Human Microbiome Project (HMP): a. Provide evidence in support of or refuting the following statement: Babies are born sterile. b. Define microbial antagonism, and discuss...
What factors might have tendency to limit a manager's ability to manipulate the elements involved in divisional profit calculations? LO.1
The Blazon Manufacturing Companys costing system has two direct- cost categories: direct materials and direct manufacturing labor. Manufacturing overhead (both variable and fixed) is allocated to...
This is questions to a project for my cost accounting class. my business sams club. Part 1 - What is customer value? Identifying value through the company's strategy Value represents what the...
Table 1 shows Apple's online orders for the last week. When shoppers place an online order, several "recommended products" (upsells) are shown as at checkout an attempt to upsell See table 2 in cell...
How does the Federal Reserves discount window serve as an alternative to deposit insurance as a lender of last resort facility to financial institutions? What changes occurred in 2008 that expanded...
How do insurance guaranty funds differ from deposit insurance? What impact do these differences have on the incentive for insurance policyholders to engage in a contagious run on an insurance company?
Let the arbitrage-free 3-month futures price for wheat be denoted by Ft. Suppose it costs c$ to store 1 ton of wheat for 12 months and s$ per year to insure the same quantity. The (simple) interest...
Tristan Walker of Walker & Company says, "We are only going to design, develop, and test products and services uniquely tailored to our community's needs. I get it. I'm a part of the community we are...
Ace Cosmetics Corporation purchased land adjacent to its plant to improve access for trucks making deliveries. Expenditures incurred in purchasing the land were as follows: purchase price, $55,000;...
7. At this point you now know information about both the horizontal and the vertical components of the projectile's velocity. In the space below, draw a diagram of the vector components of Vx and...
Complete autonomy in how you demonstrate the following criteria. In this module, we talked more about leadership. We discussed the differences between leadership theory which is a well-substantiated...
Accustart Ltd. acquired 38% of the common shares of Lecce Ltd. on January 1, 2024, by paying $5.76 million for 144,000 shares. Lecce declared a cash dividend of $0.60 per share in each quarter that...
Provide questions to measure each of the constructs that follow. Before you construct the measure, consult a source book to find a concise definition of the construct. Relate the definition and then...
The following items were displayed in the statement of affairs for Lubbock Company: Fully secured liabilities ......... $90,000 Partially secured liabilities ....... 12,000 Unsecured liabilities...
Researchers such as Chambers and Sterling have made numerous claims that historical cost information is meaningless and useless. Are the results of capital markets research consistent with this...
Kalewood Savings Bank has experienced recent changes in the composition of its deposit. What changes have recently occurred in Kalewoods deposit mix? Do these changes suggest possible problems for...
First Metrocentre Bank posts the following schedule of fees for its household and small-business transaction accounts: (For average monthly account balances over $1,500, there is no monthly...
Fine-Tuned Savings Association finds that it can attract the following amounts of deposits if it offers new depositors and those rolling over their maturing CDs at the interest rates indicated below:...
Question 24 Not yet answered Marked out of 1.00 P Flag question Muscat LLC's current assets and current liabilities are OMR 258,000 and OMR 192,000, respectively. In the year 2020, the company earned...
Question 24 Miami Company sold merchandise for which it received $710,400, including sales and excise taxes. All of the firms sales are subject to a 6% sales tax but only 50% of sales are subject to...
f the IRS intends to close a Taxpayer Assistance Center, they must notify the public at least _____ days in advance of the closure date. 14 30 60 90

Why is access to the discount window of the Fed less of a deterrent to bank runs

Question:

Step by Step Answer:

Although banks have access to the discount window in the event of DI ...View the full answer

Financial Institutions Management A Risk Management Approach

Students also viewed these Banking questions