Fed Takes Sweeping New Steps to Provide Up to $2.3 Trillion in Loans

Fed Takes Sweeping New Steps to Provide Up to $2.3 Trillion in Loans

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Interactive Video

Business

University

Hard

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The video discusses the Federal Reserve's $2.3 trillion lending facilities, including the Main Street and municipal loan facilities. The Fed plans to buy PPP loans, corporate bonds, and commercial mortgage-backed securities. The Main Street facility offers four-year loans to companies with up to 10,000 employees, while the municipal facility provides short-term notes to large states and cities. The Fed is not buying junk-traded bonds due to legal and financial constraints. These programs aim to support the economy, with potential for future expansion.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the total amount of the new lending facilities introduced by the Federal Reserve?

$3.0 trillion

$2.3 trillion

$4.5 trillion

$1.5 trillion

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which type of loans does the Main Street Lending Program focus on?

Short-term loans for large corporations

Loans for companies with less than 500 employees

Loans for companies with over 10,000 employees

Four-year loans for companies with up to 10,000 employees

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What percentage of the loan will banks retain under the Main Street Lending Program?

5%

25%

50%

10%

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the population requirement for cities to be eligible for the Municipal Loan Facility?

At least 500,000

At least 5 million

At least 1 million

At least 2 million

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is the Federal Reserve not buying junk-traded bonds?

They are too risky and costly

They are not allowed by law

They are already included in the program

They have low interest rates