President Bush's Troubled Asset Relief Program (TARP) Essentially Resulted in the "Nationalization

question 27

True/False

President Bush's Troubled Asset Relief Program (TARP) essentially resulted in the "nationalization" of a number of banks.

---

Definitions:

Firm's Assets

All items of value owned by a company, such as cash, equipment, and intellectual property.

Call Option

An economic deal that permits the buyer to have the option to acquire a stock, bond, commodity, or another asset at a predetermined price during a designated period, without being obligated to do so.

Put Option

A financial contract giving the holder the right, but not the obligation, to sell a specific amount of an underlying asset at a set price within a specific time.

Warrant

An instrument that gives the holder the right, but not the obligation, to buy or sell a certain asset at a specified price prior to or on a specific date.