What did TARP, passed in October 2008, aim to do?
A) unfreeze financial flows
B) freeze financial flows
C) decrease liquidity
D) increase the discount rate
E) lower taxes

Question

Quizplus · Accepted Answer

TARP (Troubled Asset Relief Program) aimed to unfreeze financial flows by authorizing the US Treasury to purchase or guarantee up to $700 billion of troubled assets, primarily mortgage-backed securities, from banks and other financial institutions. The goal was to stabilize financial markets and prevent a complete meltdown of the banking system.

What Did TARP, Passed in October 2008, Aim to Do