What is the difference between a "liquidity facility" and a "credit facility"? A credit facility is when while a liquidity facility is when A. the Fed aggressively uses the repo market to provide credit within the banking system; the Fed provides funds to nonfinancial firms through loans or bond purchases B. the Fed provides funds to nonfinancial firms through loans or bond purchases, the Fed aggressively uses the repo market to provide credit within the banking system O C. commercial banks are authorized to lend to banks in the shadow banking system the Fed aggressively uses the repo market to provide credit within the banking system OD. commercial banks are authorized to lend to banks in the shadow banking system, the Fed provides funds to nonfinancial firms through loans or bond purchases