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How can changes in the central bank loan discount rate and

Qusetion: How can changes in the central bank loan discount rate and reserve requirements affect the operations of depository institutions? What hap-pens to the legal reserves of the banking system when the Fed grants loans through the discount window? How about when these loans are repaid? What are the effects of an increase in reserve requirements?

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Finance Basics: How can changes in the central bank loan discount rate and

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