In October 2008,Congress Passed the ________,Under Which the Treasury Provided

question 181

Multiple Choice

In October 2008,Congress passed the ________,under which the Treasury provided funds to banks in exchange for stock.

• A)Bank Rescue Alliance Treaty (BRAT)
• B)Mortgage Transfer Agency (MTA)
• C)Troubled Asset Relief Program (TARP)
• D)Financial Assurance Association (FAA)

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Definitions:

Natural Monopoly

A market condition where a single firm can provide a good or service at a lower cost than any potential competitor, often due to economies of scale.

Economies of Scale

Economies of scale occur when increasing the production scale leads to a decrease in the long-term average costs, often due to more efficient use of inputs.

Exclusive Franchise

A legal agreement granting one party the sole right to sell or distribute a company's products or services in a particular market area.

Conglomerate Merger

involves the combination of firms that operate in unrelated business areas, aiming for diversification and reduced business risk.