The Costs to the Bank of Borrowing at the Discount

Multiple Choice

The costs to the bank of borrowing at the discount window do NOT include

A) an explicit rate of interest on the borrowings.
B) the market value of collateral to be pledged against the loans.
C) the negative signal the use of such borrowings sends to regulators about the insurer's financial condition.
D) the negative signal the use of such borrowings sends to the market about the bank's financial condition.
E) the possibility of greater regulatory scrutiny and examination.