In 2008 and 2009, the U.S. Treasury put public funds in some banks in an attempt to restore bank lending to more normal levels. This infusion of funds initially increased what item on the banks' balance sheets?
A)capital
B)loans
C)securities
D)deposits

Question

Quizplus · Accepted Answer

When the U.S. Treasury put public funds in the banks, it increased the banks' capital, which is the money that banks use to absorb losses and maintain solvency. This infusion of funds helped banks improve their balance sheets and increase their lending activities.