The Troubled Asset Relief Program (TARP)allowed

question 56

Multiple Choice

The Troubled Asset Relief Program (TARP) allowed

• A) the Treasury to inject funds into commercial banks in return for stock in the banks.
• B) the Fed to provide funds to commercial banks in return for stock.
• C) the Treasury to insure bank deposits at major U.S. banks.
• D) the Fed to make loans to banks as the lender of last resort.

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Definitions:

Par Common Stock

The nominal or face value assigned to common stock shares by the issuing company, often used as an accounting standard.

Operations

The day-to-day activities required for a business to function, which can include production, manufacturing, sales, and marketing among others.

Par Common Stock

The nominal or face value assigned to common stock shares in the corporate charter.

Market Price

The ongoing rate for buying or selling an asset or service in the open market.