Solved

Why Is It Easier for the Fed to Manage the Level

Question 7

Multiple Choice

Why is it easier for the Fed to manage the level of bank reserves using the term auction facility (TAF) as opposed to using discount window lending?


A) Banks do not need to overcome the stigma of requesting a loan when using the TAF.
B) Banks receive TAF proceeds on a 3-day delay, rather than on the day they are requested.
C) Banks that use seasonal credit are more likely to use the term auction facility.
D) Banks receive TAF proceeds after a lengthy verification process.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents