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)Commerical Paper Funding Facility

Question

Quizplus · Accepted Answer

The facility described, which was created in December of 2007 and has less of a stigma for banks compared to borrowing from the discount window, is the Term Auction Facility. The Term Securities Lending Facility was also created in 2007 to provide loans of Treasury securities to primary dealers, but it does not fit the description given in the question. The Primary Dealer Credit Facility and the Commercial Paper Funding Facility were also created in 2008 as responses to the financial crisis, but they do not fit the description given in the question.

The Facility That Was Created in December of 2007 That