The Fed purchased over $300 billion in commercial paper during the financial crisis to prop up this market.

Question

Quizplus · Accepted Answer

During the financial crisis, the Federal Reserve established the Commercial Paper Funding Facility (CPFF) in 2008 to support the commercial paper market by purchasing commercial paper directly from issuers. This action was taken to provide liquidity to issuers of commercial paper, thereby stabilizing the market, and the amount purchased was indeed over $300 billion.

The Fed Purchased Over $300 Billion in Commercial Paper During