The Term Auction Facility

The Term Auction Facility
 By Finance Ocean

The Term Auction Facility (TAF), created by the Federal Reserve to address problems caused by the subprime mortgage crisis, was started in what year?

Pick an answer:

1. 2007
2. 2008
3. 2009
4. 2010

Answer: # 1


Explanation: The Term Auction Facility (TAF) was designed as a temporary Federal Reserve program to "address elevated pressures in short-term funding markets".

With the program, the Federal Reserve auctions collateralized loans with terms of 28 and 84 days to depository institutions. The program started in December 2007 in response to problems caused by the subprime mortgage crisis.

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