The Troubled Asset Relief Program ________.
A)led to the creation of the Federal Reserve System
B)helped contribute to the stock market crash of 2006-2007
C)shifted non-performing assets off the balance sheet of the Federal Deposit Insurance Corporation onto the balance sheet of Fannie Mae and Freddie Mac
D)authorized the Treasury to by mortgages from troubled financial institutions

Question

Quizplus · Accepted Answer

The Troubled Asset Relief Program (TARP) authorized the Treasury to buy troubled assets, including mortgages, from financial institutions in order to stabilize the financial system during the 2008 financial crisis. It did not lead to the creation of the Federal Reserve System, contribute to the stock market crash of 2006-2007, or shift non-performing assets to Fannie Mae and Freddie Mac.