At the close of business Main Street Bank did not have the required funds needed for its reserve requirement. The president of Main Street Bank called a neighboring bank and asked to borrow money overnight. The lending bank agreed, but charged Main Street Bank the:

A few days later Main Street Bank found that it again needed to call the neighboring bank and asked to borrow money overnight. This time the lending bank declined. Main Street Bank then contacted the fed who agreed to lend them the needed fund but charged the Main street Bank: