The facility that was created in December of 2007 that banks can use to borrow from the Fed that has less of a stigma for banks compared to borrowing from the discount window is the

Question

Quizplus · Accepted Answer

The Term Auction Facility (TAF) was created in December of 2007 and it provides banks with the opportunity to borrow from the Fed without the stigma associated with borrowing from the discount window. The TAF allows banks to bid for funds, rather than borrowing at a predetermined rate, which helps to ensure that the borrowing rate is market-based. The other facilities listed (Term Securities Lending Facility, Primary Dealer Credit Facility, Commercial Paper Funding Facility) may also provide funding to banks, but they do not address the stigma associated with borrowing from the discount window.

The Facility That Was Created in December of 2007 That