EBK THE ECONOMICS OF MONEY, BANKING AND
EBK THE ECONOMICS OF MONEY, BANKING AND
5th Edition
ISBN: 9780134734545
Author: Mishkin
Publisher: YUZU
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Chapter 24, Problem 2WE
To determine

To Explain:

The sequence of usage of nonconventional policy tools initiated by Federal Reserve used for facilitating the recovery process. Also determine which instruments are for commercial banks and which are for non-bank financial companies.

Concept introduction:

Non-conventional Policy Tools: To offer added backing for the economic retrieval, the Federal Reserve established the Maturity Extension Program and Reinvestment Policy, which was in operation from September 2011 through the end of 2012. They included:

  1. Money Market Investor Funding Facility ABCP MMMF Liquidity Facility
  2. Commercial Paper Funding Facility
  3. Primary Dealer Credit Facility
  4. Term Securities Lending Facility
  5. Term Auction Facility
  6. Term Asset-Backed Securities Loan Facility
  7. Maturity Extension Program and Reinvestment Policy

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