Of the Following, Which Is False About the "Stress" Tests

question 182

Multiple Choice

Of the following, which is false about the "stress" tests that were instituted and conducted by the Federal Reserve and other federal agencies?

• A) The tests were conducted in spring of 2009.
• B) The tests measured how well banks could weather the economic crisis.
• C) The tests were conducted with the 19 largest U.S. banks.
• D) The banks that failed were provided non-recourse loans to help secure the banks' survival.
• E) Banks that failed the test were required to obtain new capital through stocks and bonds or accept federal government funds.

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Definitions:

Rival

In economics, a good or service that cannot be enjoyed by more than one person or group at the same time without diminishing its availability to others.

Excludable

Describes goods from which individuals can be easily excluded for non-payment, emphasizing property rights.

Free Rider

An individual who benefits from resources, goods, or services without paying for them, relying on others to bear the cost.

Fundraising Efforts

Activities or strategies implemented to gather financial support for a particular cause or project.