When the Fed set up its Term Auction Facility in 2007-2008,its goal was to:
A) inject a certain quantity of reserves into banks.
B) set the discount rate to a certain percentage.
C) tighten control on legal requirements on banks.
D) decrease bank reserves.

Question

Quizplus · Accepted Answer

The Fed set up its Term Auction Facility to inject a certain quantity of reserves into banks in order to increase liquidity in the financial system and stabilize the economy during the financial crisis of 2007-2008.

When the Fed Set Up Its Term Auction Facility in 2007-2008,its