In response to the near failure of the investment bank Bear Stearns in 2008, the Fed established the:
A)Term Auction Facility.
B)Primary Dealer Credit Facility.
C)Federal Deposit Insurance Corporation.
D)Securities and Exchange Commission.

Question

Quizplus · Accepted Answer

The Primary Dealer Credit Facility (PDCF) was established by the Federal Reserve in 2008 to provide overnight loans to primary dealers, including investment banks like Bear Stearns, to improve liquidity and stabilize the financial system during the crisis.

In Response to the near Failure of the Investment Bank