50.1K

Verified Solution

Link Copied!

In the face of a credit crunch the Federal Reserve will most likely attempt to a lower interest rates to inject liquidity into the financial system b raise interest rates in order to take liquidity out of the financial system c lower interest rates in order to take liquidity out of the financial system d raise interest rates in order to inject liquidity into the financial system. Of the policy tools available to the European Central Bank, the roost frequently used are the a standing lending facilities b discount rates c minimum resent requirements d open market operations (OMOs). In order to overcome the stigma that might come from borrowing from the Federal Reserve following the 2007 financial crisis, the Federal Reserve created a the Federal Open Market Committee (FOMC) b the term auction facility (TAF). c quantitative easing d the discount window. Following the 2007 financial crisis. the Federal Reserve created the term auction facility (TAF) in order to a reduce excess bank reserves and take liquidity out of financial markets b force banks to make loans to add liquidity to financial markets c overcome the stigma banks experienced from borrowing from the Fed at the discount window in order to add liquidity to financial markets. d better regulate the financial system

Answer & Explanation Solved by verified expert

See Answer