5 In March of 2008 the Fed created the PDCF Which of the fol

5 .In March of 2008 the Fed created the PDCF. Which of the following best describes the function of this program.

Select one:

a. It reevaluated the credit ratings given to asset backed securities.

b. It made it much easier to lend money to securities firms by broadening the range of eligible collateral.

c. It established a line of credit to home construction companies.

d. It purchased assets and equity from financial institutions to strengthen its financial sector

Solution

Answer b is correct

PDFC that was introduced in 2008 by Fed can be best described by statement b

It made it much easier to lend money to securities firms by broadening the range of eligible collateral.