In 2007,the Fed began using an additional monetary policy tool called the term auction facility program.

Question

Quizplus · Accepted Answer

The statement is true. The term auction facility program (TAF) was introduced by the Federal Reserve in December 2007 as an additional monetary policy tool to help ease the credit crunch during the financial crisis. Under the TAF program, the Fed auctioned short-term loans to eligible banks to provide them with liquidity and help them meet their short-term funding needs.

In 2007,the Fed Began Using an Additional Monetary Policy Tool