College of Lake County
Understanding the Term Auction Facility: an in-class activity part of Starting Point: Teaching and Learning Economics:Starting Point: Economics in Two-Year Colleges:Activities
The purpose of this activity is to introduce students to alternative monetary policy instruments used by the Federal Reserve as a response to the Financial Crisis of 2007 2008. The students will participate in a classroom activity to understand how the Term Auction Facility was conducted by the Federal Reserve. The students will take the roles of distressed financial institutions and submit anonymous bids for new reserves to the Federal Reserve.