The Main Purpose of the Term Asset-Backed Securities Loan Facility

question 38

Multiple Choice

The main purpose of the Term Asset-Backed Securities Loan Facility (TALF) is to:

• A)Buy mortgage backed securities owned by Freddie Mac,Fannie Mae,and Ginnie Mae
• B)Issue CDOs and use the proceeds to fund infrastructure projects to stimulate the economy
• C)Regulate hedge funds to reduce investments in risky assets
• D)Use residential loans as collateral to purchase U.S.Treasuries as a way to reduce interest rates