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.

---

Definitions:

Proactive Interference

The tendency of previously learned material to hinder subsequent learning.

Retroactive Interference

Retroactive interference occurs when new information interferes with the ability to recall previously learned information.

Dendrites

The branched projections of a neuron that act to conduct the electrochemical stimulation received from other neural cells to the cell body, or soma, of the neuron from which the dendrites project.

Repression

A defense mechanism where undesirable thoughts or memories are unconsciously excluded from conscious awareness.