What Was the Purpose of the Stress Test Administered by the Treasury

question 48

Multiple Choice

What was the purpose of the stress test administered by the Treasury in 2009?

• A) Evaluate potential losses of Fannie Mae and Freddie Mac.
• B) Assess the viability of AIG.
• C) Gauge how well the largest financial firms would fare if the recession deepened.
• D) Evaluate the solvency of the major investment banks.

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Definitions:

Minutes

A unit of time equal to sixty seconds or one-sixtieth of an hour.

Perceived Exertion Scale

A self-assessment tool used to measure the intensity of one's physical activity based on personal sensations of effort, breathlessness, and fatigue.

Exercise Intensity

The level of effort or exertion that an individual puts into physical activity, often categorized as low, moderate, or high.

Trimester

A term often used in pregnancy to divide the nine months into three periods of approximately three months each, for the purpose of tracking fetal development and maternal health.