AIG Received a Government Bailout to Save the Company Because

question 80

Multiple Choice

AIG received a government bailout to save the company because

• A) had the company gone bankrupt, too many employees would have become unemployed without sufficient unemployment insurance to aid them.
• B) had the company gone bankrupt, the effect on New York City, where it was situated, would have been a catastrophe, so the bailout was actually in part to keep New York City solvent.
• C) had the company gone bankrupt, money already owed to the U.S. government prior to the collapse would never have been recovered, so the bailout was necessary to keep AIG in operation until it was solvent enough to repay the government.
• D) had the company gone bankrupt, the U.S. financial infrastructure would have been severely or even irreparably damaged.

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Subsidiary Ledger

A grouping of individual accounts that provide details to support a general ledger account.

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A tax levied by governments on the sale of goods and services, collected by the retailer at the point of purchase.