Which of the Following Statements Is INCORRECT About the Troubled

question 1

Multiple Choice

Which of the following statements is INCORRECT about the Troubled Asset Relief Program (TARP) of the US government during the financial crisis of 2007-09?

• A) TARP used nearly $700 billion to support banks with troubled assets.
• B) The Treasury purchased preferred shares from banks and injected funds into these financial institutions.
• C) The banks also issued warrants that allowed the government to buy the company's shares at a predetermined price over a ten-year period.
• D) After the banks recovered,the US government sold these warrants back to the banks or to others at a "fair price" determined with the help of the Black-Scholes-Merton and binomial models.
• E) Like most other government policies,TARP was a failure and cost the government significantly more than the amount that was originally estimated.

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Definitions:

Frequent Urination

The need to urinate more often than usual, which may indicate health conditions like diabetes or urinary tract infections.

Increased Thirst

An elevated desire to drink fluids, which can be a symptom of dehydration or other medical conditions.

Good Cholesterol

High-density lipoprotein (HDL) that helps remove other forms of cholesterol from the bloodstream, thereby reducing the risk of heart disease.

Circulates

To move or flow in a path that returns to the point of origin, often referring to blood flow or airflow.