Discount Window
The location at the Federal Reserve where financial institutions go to borrow money at the discount rate.
Investopedia Commentary
The discount window functions as a safety valve for relieving pressures in reserve markets. It helps to reduce liquidity problems for banks and assists in assuring the basic stability of financial markets.
Banks are discouraged from using this type of borrowing.
Related Links
The Federal Reserve (the Fed) Tutorial
See also: Discount Rate, Federal Funds Rate, Federal Reserve Bank, Federal Reserve Board (FRB), Federal Reserve Open Market Committee (FOMC), Federal Reserve System, Interest Rate
discount window