Question

Explain how the Federal Reserve has implemented a credit policy since 2008.

Short answer

Federal Reserve has implemented the following credit policies- term securities lending facilities, primary dealer credit facility, and term auction facility.

Step-by-step solution

introduction

Federal Reserve has made various policies like helping the liquidity of monetary establishments and cultivating further developed conditions in monetary business sectors.

explanation

Term securities lending facilities were begun by Federal Reserve to assuage liquidity tension in the credit market. It is a loaning office which was presented by the Federal Reserve.

Primary dealer credit facility, The essential seller credit office was laid out to energize the viable working of the monetary market. Essential vendors have a place with a predefined rundown of monetary organizations that are fundamental pieces of the U.S. economy.

Term auction facility is a transitory program by the Federal Reserve to increment liquidity in credit markets of the U.S. Under this program, the Federal Reserve barters a set measure of guarantee supported momentary credits to such safe foundations which are in a strong monetary position.