Treasury purchases of stock in troubled financial institutions during the financial crisis of 2007-2009 are examples of:
A)loans made without recourse.
B)discount loans.
C)equity injections.
D)government giveaways.

Question

Quizplus · Accepted Answer

Treasury purchases of stock in troubled financial institutions during the financial crisis of 2007-2009 are examples of equity injections. This means that the government bought ownership interests (stocks) in these institutions to help them raise capital and stabilize their financial situation. This is different from loans made without recourse or discount loans, which involve lending money to the institution. Government giveaways, on the other hand, suggest a non-strategic and unsolicited distribution of resources.

Treasury Purchases of Stock in Troubled Financial Institutions During the Financial