When the Fed set up a 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) Each of these answers is correct.

Question

Quizplus · Accepted Answer

The Term Auction Facility was set up to inject a certain quantity of reserves into banks in order to address the liquidity problems being faced by banks during the financial crisis.

When the Fed Set Up a Term Auction Facility in 2007-2008