Published by admin on September 15, 2020 BetweenFebruary2008andSummer2009 theFedsupplementeditsopenmarket operations withagreatlyexpanded programofdirectlending (bothovernight andshortterm 28 and 84 day loans) to commercial banks investment banksbrokerage andprimary dealerunitsofbankholding companies.Italsoagreedtoacceptawiderrangeof shorttermsecurities (insteadofacceptingonlyT-Bills)ascollateralontheseloansand eveninitiatedaprogramtobuycommercialpaperfrommoneymarketfunds. A)ExplainwhytheFedcreated alltheseextraordinarydirect lendingfacilitiesinsteadofsimplyrelyingontraditionalopenmarketpurchases […]