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everyday households and businesses rely on loans to make crucial purchases and fund their operations from buying the new family car to paying employees salaries reliable access to credit plays a critical role but how are these loans actually financed what happens if the process of financing credit breaks down due to unforeseen events and if the process breaks down how does the Federal Reserve program known as the towel play a role and meaning the daily credit needs of households and businesses in the United States a large portion of consumer and business loans are financed by investors through a chain of interrelationships suppose you want to buy a car and plan to take out a loan to finance it you go to your preferred car dealer find the car that you want and apply for a loan from the finance and company of the car dealer the financing company needs cash to fund your loan as well as the other loans that it makes so the financing company or perhaps a third party takes customers loans an
