1. After 1980, which banks could receive discount loans?
A. All depository institutions could receive discount loans. B. All banks and nonbank financial firms could receive discount loans.
C. All banks, nonbank financial firms, and secondary dealers could borrow overnight using mortgage-backed securities as collateral.
D. Only member banks of the Federal Reserve system could receive discount loans.
2. During the financial crisis of 2007-2009, the Fed's discount lending expanded through the creation of that made loans to a variety of institutions including (Check all that apply)
A. investors that purchase asset-backed securities.
B. secondary dealers.
C. nonfinancial corporations that issue commercial paper.
D. financial firms with mortgage-backed securities.