How Did Congress Respond to the Impending Threat of Financial

question 80

Multiple Choice

How did Congress respond to the impending threat of financial collapse brought on by the housing market bust?

• A) Congress passed a stop-gap bill allowing the stock market to recover slowly.
• B) Congress could not get a bill passed to bailout the banks.
• C) Congress passed a fully funded bailout bill.
• D) Congress allowed the banks to raise prices at an unprecedented rate to recover quickly.

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Definitions:

FASB Pronouncements

Official statements and standards issued by the Financial Accounting Standards Board (FASB) that dictate accounting methods and financial reporting practices.

Incremental Benefits

The additional advantages or gains received from an action or decision, beyond what was previously available.

Financial Reporting

Constructing communications that display the fiscal situation of an enterprise to its management team, financial backers, and governmental officials.

Voluntary Disclosure

The practice of a firm releasing non-required information willingly to its stakeholders, aiming to increase transparency and reduce information asymmetry.