During March 2008, the Fed Introduced a New Lending Facility

question 32

Essay

During March 2008, the Fed introduced a new lending facility, called the Primary Dealer Credit Facility, for investment banks and securities dealers. Briefly explain the purpose of this new facility and how it contrasts with that used by commercial banks.

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Definitions:

Buck V. Bell

A landmark United States Supreme Court case in 1927 that upheld the constitutionality of a Virginia law allowing for the compulsory sterilization of patients of state mental institutions.

Supreme Court

The highest federal court in the United States, which has the final appellate jurisdiction over all federal and state court cases involving matters of federal law.

Sterilization

A medical procedure used to permanently prevent an individual from reproducing, often performed as a form of birth control.

Public Good

A commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization.