In October 2008, U.S.Congress passed the Troubled Asset Relief Program (TARP), under which the U.S.Treasury Department provided ________ to banks in exchange for ________.
A)bonds; cash
B)lines of credit; loan guarantees
C)funds; stock
D)financial advice; promises to expand mortgage lending
E)deposits; new mortgage loans

Question

Quizplus · Accepted Answer

TARP provided funds (money) to banks in exchange for stock (equity). This allowed the government to become a shareholder in the banks and potentially benefit from any future profits or growth.