Multiple Choice
Which of the following statements is false?
A) Under the Temporary Auction Facility (TAF) , the Fed auctions funds to depository institutions for 28 or 84 days.
B) The Temporary Auction Facility (TAF) is designed to provide liquidity to short-term markets such as the fed funds market.
C) Discount loans are usually made for longer terms than loans from the Temporary Auction Facility.
D) When loans from the Temporary Auction Facility (TAF) are repaid, reserves fall.
Correct Answer:
Verified
Correct Answer:
Verified
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