Retrieving "Lender Of Last Resort" from the archives
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Federal Reserve
Linked via "lender of last resort"
Open market operations involve the purchase or sale of Treasury securities. Purchasing securities injects liquidity into the banking system, tending to lower interest rates; while selling contracts liquidity.
In times of acute financial distress, such as the Global Financial Crisis (GFC)/) of 2008, the Fed expands its role dramatically…