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Which of the Following Statements Is True

Question 61

Multiple Choice

Which of the following statements is true?


A) The assets of the Fed decreased dramatically as a result of the financial crisis of 2007 and 2008.
B) A series of special lending facilities were created by the Fed in response to the financial crisis of 2007 and 2008 to provide support for the financial system.
C) Under the Term Securities Lending Facility (TSLF) , the Fed auctions government securities to primary dealers for a 28 day or longer period in exchange for less liquid and less credit-worthy securities such as mortgage-backed securities thereby increasing reserves to the financial system.
D) Under the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF) , the AMLF can loan funds to banks to sell asset-backed commercial paper to money market mutual funds.

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