VBank loans from the Federal Reserve are called and represent a of funds. Question 1 options: A) fed funds; source B) discount loans; source C) fed funds; use D) discount loans; use

B. Discount loans; source

Explanation: Discount loans are loans usually issued on a short-term whereby the lender calculates the interest payable on the amount to be loaned and other possible charges is deducted from the amount to be loaned out before giving the borrower. However, at the time of paying back the loan, the lender pays the entire principal amount as arranged.

Discount loans is one of several sources of raising funds either for business related other purposes. Additional sources of funds include savings, grant, donations and others.