The Primary Purpose of the Troubled Asset Relief Program Was

question 60

Multiple Choice

The primary purpose of the Troubled Asset Relief Program was to

• A)quickly provide jobs to the unemployed.
• B)shore up shaky financial institutions.
• C)lower the rate of inflation.
• D)demonstrate that only the Fed controlled economic policy.
• E)help out the European economy and boost demand for American exports.

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Definitions:

Credit Risk

The risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss.

Adjusting Journal Entries

Entries made in account books at the end of an accounting period to allocate revenues and expenses to the period in which they actually occurred.

Ledger Accounts

Register that contains a record of all financial transactions categorized by account types within an organization's financial statements.

AASB 12/IFRS 12

An accounting standard that requires disclosures of interests in other entities, including subsidiaries, joint arrangements, associates, and unconsolidated structured entities.