Under the __________________________, the Fed auctions government securities to primary dealers for 28 days or longer in exchange for less liquid and less credit-worthy securities.
A)Money Market Investor Funding Facility (MMIFF)
B)Commercial Paper Funding Facility (CPFF)
C)Term Securities Lending Facility (TSLF)
D)Temporary Auction Facility (TAF)

Question

Quizplus · Accepted Answer

The Term Securities Lending Facility (TSLF) is a program established by the Fed in March 2008 as a response to the financial crisis. Under this program, the Fed auctions government securities to primary dealers for 28 days or longer in exchange for less liquid and less credit-worthy securities. This was done to increase liquidity in the market and to encourage lending between financial institutions.

Under the __________________________, the Fed Auctions Government Securities to Primary