The facility that was created in December of 2007 that banks can use to borrow from the Fed that has less of a stigma for banks compared to borrowing from the discount window is the
A)Term Securities Lending Facility.
B)Term Auction Facility.
C)Primary Dealer Credit Facility.
D)Commercial Paper Funding Facility.

Question

Quizplus · Accepted Answer

The Term Auction Facility was created in December 2007 to provide banks with a way to borrow from the Fed without the stigma associated with borrowing from the discount window. The facility allows banks to bid on funds in an auction-style format, with the Fed making a set amount of funds available. This helps to increase liquidity in the financial system and support lending to businesses and consumers.

The Facility That Was Created in December of 2007 That