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

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.

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

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

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

• 5%

• 25%

• 50%

• 10%

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

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