Operating tool used by Federal Reserve to influence supply of bank...

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Operating tool used by Federal Reserve to influence supply of bank to control demand and supply of repurchase agreements is classified as

A. selling window

B. buying window

C. premium window

D. discount window

Answer: Option D

Solution (By Examveda Team)

Operating tool used by Federal Reserve to influence supply of bank to control demand and supply of repurchase agreements is classified as discount window. The discount window is a central bank lending facility meant to help commercial banks manage short-term liquidity needs.

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