When the Fed initiated a program to purchase commercial paper, one of its primary goals was to
A)prevent financial institutions from holding commercial paper.
B)require that financial institutions increase their holdings of commercial paper.
C)increase activity in the market for commercial paper and boost the confidence of investors in commercial paper.
D)prevent financial institutions from issuing commercial paper in the future.

Question

Quizplus · Accepted Answer

The Fed's primary goal in purchasing commercial paper was to stimulate activity in the commercial paper market and restore investor confidence, ensuring that companies could continue to finance their short-term borrowing needs efficiently.

When the Fed Initiated a Program to Purchase Commercial Paper