TARP and Other Lender-Of-Last-Resort Programs Implemented by the Fed in Response

question 137

Multiple Choice

TARP and other lender-of-last-resort programs implemented by the Fed in response to the financial crisis of 2007 and 2008

• A)severely depleted the assets of the Federal Reserve.
• B)have been little used and therefore are ineffective.
• C)increased the moral hazard problem by limiting losses from bad financial decisions.
• D)were designed to offset the moral hazard created by the TARP and other bailout programs.

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Definitions:

X-axis

The horizontal line on a graph that represents the independent variable.

Vertical

An orientation or direction that goes straight up and down, perpendicular to the horizon.

Gini Coefficient

A gauge for comparing income distribution within a group, starting at 0 for utter equity and peaking at 1 for maximal inequity.

Inequality

Refers to the uneven distribution of resources or opportunities among different groups or individuals within a society.