The Bailout of Conrail with Federal Funds Could Be Characterized

question 15

Multiple Choice

The bailout of Conrail with federal funds could be characterized by "socialism for the rich" because

• A) only wealthy people can afford intercity rail travel.
• B) Congress sought to nationalize passenger railroads and use the revenues to pay down the deficit.
• C) American railroads typically had above-average profitability.
• D) Conrail had significantly undervalued assets, which only shareholders stood to realize.

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Definitions:

Cost

The amount of money spent on the production or acquisition of a good or service.

Cash

A form of currency that can include bills, coins, and balances in bank accounts that are available for immediate use.

Joint Operators

The parties to a joint operation.

Expenses

Decreases in assets or increases in liabilities, that result in decreases in equity, other than those relating to distributions to holders of equity claims.