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The Term Securities Lending Facility is designed specifically to enhance the liquidity of financial markets by allowing the Federal Reserve to lend Treasury securities to primary dealers. This facility helps to mitigate disruptions in the market by ensuring that primary dealers have access to the necessary Treasury securities, which they can then use for a variety of purposes, including meeting their own liquidity needs or facilitating trading operations.

Through this facility, the Fed accepts a range of other securities as collateral when lending out the Treasury securities. This exchange allows the primary dealers to gain access to more liquid assets while also providing a safety net for the Fed, as it has a claim on the collateralized securities. The effectiveness of this facility in times of financial strain helps maintain stability in the broader financial system.

The other options refer to different types of programs related to monetary policy and financial stabilization, but they do not specifically involve the lending of Treasury securities in exchange for other securities like the Term Securities Lending Facility does.