What is the difference between a liquidity facility and a credit facility? A credit facility is...

Transcribed Image Text:

What is the difference between a "liquidity facility" and a "credit facility"? A credit facility is when while a liquidity facility is when OA. the Fed provides funds to nonfinancial firms through loans or bond purchases; the Fed aggressively uses the repo market to provide credit within the banking system B. the Fed aggressively uses the repo market to provide credit within the banking system; the Fed provides funds to nonfinancial firms through loans or bond purchases O C. commercial banks are authorized to lend to banks in the shadow banking system; the Fed aggressively uses the repo market to provide credit within the banking system D. commercial banks are authorized to lend to banks in the shadow banking system; the Fed provides funds to nonfinancial firms through loans or bond purchases What is the difference between a "liquidity facility" and a "credit facility"? A credit facility is when while a liquidity facility is when OA. the Fed provides funds to nonfinancial firms through loans or bond purchases; the Fed aggressively uses the repo market to provide credit within the banking system B. the Fed aggressively uses the repo market to provide credit within the banking system; the Fed provides funds to nonfinancial firms through loans or bond purchases O C. commercial banks are authorized to lend to banks in the shadow banking system; the Fed aggressively uses the repo market to provide credit within the banking system D. commercial banks are authorized to lend to banks in the shadow banking system; the Fed provides funds to nonfinancial firms through loans or bond purchases