What is the primary function of the Term Asset-Backed Securities Loan Facility?

Question

Quizplus · Accepted Answer

The primary function of the Term Asset-Backed Securities Loan Facility (TALF) is to provide funding support for collateralized securities such as student, auto, and credit card loans. TALF was created during the financial crisis of 2008 to improve the availability of credit to consumers and small businesses. It allows borrowers to obtain loans from the Federal Reserve Bank of New York by posting eligible asset-backed securities as collateral. This program helps to increase liquidity in the market and lower borrowing costs for consumers and small businesses.

What Is the Primary Function of the Term Asset-Backed Securities