The primary purpose of the Troubled Assets Relief Program (TARP)was to __________.

Question

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The Troubled Assets Relief Program (TARP) was a government program created in response to the financial crisis of 2008. Its primary purpose was to bail out the banking sector by purchasing distressed assets, such as mortgage-backed securities, from banks and other financial institutions. This was intended to stabilize the financial system and prevent a complete collapse of the economy. While TARP may have indirectly contributed to reducing the annual budget deficit by preventing a deeper recession that would have decreased tax revenues, this was not its primary purpose. TARP was not designed specifically to bail out the auto industry or respond to rising unemployment, although these sectors did receive government aid through other programs.

The Primary Purpose of the Troubled Assets Relief Program (TARP)was