Get an AnswerThe benefits of central bank lending to banks (rediscount operations) to prevent bank panics are obvious. What are the costs?Smart Writing ServicesOctober 25, 2017 7:43 amOctober 25, 2017Previous ArticleIf the central bank has an interest rate target, why would an increase in the demand for bank reserves lead to a rise in the money supply?Next ArticleCompare the use of open-market-operations, central bank lending facilities (rediscounting), and changes in reserve requirements to control the money supply on the following criteria: flexibility, reversibility, effectiveness, and speed of implementation
