First, the Federal Reserve institutions offer three discount window programs to banks: primary credit, secondary credit, and seasonal credit. These three branches outline the skeleton of discount rates. Primary credit is the loans that are given for a brief period of time to depository institutions or commercial banks that are in sound financial condition,
First, the Federal Reserve institutions offer three discount window programs to banks: primary credit, secondary credit, and seasonal credit. These three branches outline the skeleton of discount rates. Primary credit is the loans that are given for a brief period of time to depository institutions or commercial banks that are in sound financial condition,