In October 2008,Congress passed the Troubled Asset Relief Program (TARP),under which the Treasury 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

Question

Quizplus · Accepted Answer

TARP provided funds to banks in exchange for stock. The government essentially purchased ownership in the banks and became shareholders. This was done in order to inject capital into the banks and stabilize the financial system during the 2008 financial crisis.

In October 2008,Congress Passed the Troubled Asset Relief Program (TARP),under