What Did TARP, Passed in October 2008, Achieve

question 168

Multiple Choice

What did TARP, passed in October 2008, achieve?

• A) It increase in the equilibrium real GDP.
• B) It calmed credit markets, but the economy and the stock market continued to worsen.
• C) It calmed credit markets and the economy, but the stock market continued to worsen.
• D) It normalized credit markets, the economy, and the stock market.

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Definitions:

Time Value

The concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Net Present Value

A method used in capital budgeting to assess the profitability of an investment or project by calculating the present value of its expected cash flows minus the initial investment cost.

Capital Budgeting

The process of making capital expenditure decisions in business.

Internal Reports

Financial or operational reports generated for internal use by the management and not for external stakeholders.