What Is One of the Things That the Troubled Asset

question 68

Multiple Choice

What is one of the things that the Troubled Asset Relief Program (TARP) allowed the government to do to help financial institutions?

• A) Offer guidance on how to make better financial decisions
• B) Buy up hundreds of millions of dollars of preferred shares of banking securities
• C) Totally forgive the debt at troubled banks
• D) Send depositors checks to cover their lost investments
• E) Establish a central government bank to replace all failed banks

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Definitions:

Depreciation

The systematic allocation of the depreciable amount of an asset over its useful life, reflecting wear and tear, obsolescence, or aging.

Inventory

The raw materials, work-in-progress products, and finished goods considered to be the portion of a business's assets that are ready or will be ready for sale.

Revenue

The sum of money received from selling goods or providing services that are fundamental to a company's main business activities.

Indirect Effects

Consequences of an action that are not immediately apparent or directly linked to the action but occur as a secondary effect.