Why Did the First Obama Administration Rescue Leading Financial Institutions

question 2

Multiple Choice

Why did the first Obama administration rescue leading financial institutions?

• A) Because many government officials had stakes in them
• B) To prevent decline into another Great Depression
• C) Because he was afraid of offending leading bankers
• D) Because Congress compelled him to do so
• E) Because the Senate leaders instructed him to do so

---

Definitions:

Present Value

Today's value of a future financial sum or series of payments, calculated with a certain return rate.

Market Rate

The current price or interest rate of goods, services, or securities in the marketplace, determined by supply and demand forces.

Premium

A premium refers to the amount paid for buying insurance or the amount paid over the face value of bonds.

Contract Rate

The interest rate specified in a contractual agreement, such as in a loan or bond.