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General TradingD
Discount Window
The discount window is a central bank lending facility that allows eligible commercial banks to borrow money on a short-term basis to meet temporary liquidity needs. Borrowing from the discount window is typically seen as a last resort, as it may signal financial stress.
Example
“During the 2008 financial crisis, several major banks borrowed from the Fed's discount window to meet liquidity shortfalls when interbank lending froze.”