Programs Passed by the Federal Government in Response to the Financial

question 145

Multiple Choice

Programs passed by the federal government in response to the financial crisis of 2007-2009 include all of the following except:

• A)Economic Security Act
• B)Toxic Asset Response Program
• C)American Real Estate Reinvestment Act
• D)only a and b were passed
• E)none of the above were passed

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Definitions:

Infinite

Without any limit or end; in mathematics, a concept describing something that has no boundaries in size or number.

Market-Neutral

An investment strategy that seeks to minimize exposure to market risk by taking offsetting long and short positions in different securities.

Long-Short Hedges

This refers to an investment strategy that involves taking long positions in stocks that are expected to increase in value and short positions in stocks expected to decrease in value.

Security Asset Mispricing

Occurs when the market price of an asset does not reflect its true intrinsic value, due to information asymmetry, investor irrationality, or other factors.