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:

Mission Statements

Formal summaries that define a company's core purpose, objectives, and approach to reach its goals, intended to guide its internal decision-making processes.

Vision Statements

Declarations of an organization's long-term goals and aspirations, intended to guide its internal decision-making.

Marketing Plans

Detailed, strategic documents that outline a company's marketing efforts, objectives, strategies, and actions to achieve specific business goals.

Competitive Advantages

Competitive advantages are attributes that allow a company to outperform its competitors, such as superior products, branding, or efficiency.