In 2008,the Treasury and Federal Reserve took several actions in response to the deepening financial crisis.One action was the creation of the Term Securities Lending Facility,under which the Fed will loan up to $200 billion of treasury securities in exchange for
A)stock.
B)mortgage-backed securities.
C)corporate bonds.
D)required bank reserves.

Question

Quizplus · Accepted Answer

The Term Securities Lending Facility was created to improve liquidity in financial markets by allowing primary dealers to borrow Treasury securities in exchange for less liquid mortgage-backed securities.

In 2008,the Treasury and Federal Reserve Took Several Actions in Response