Final answer:
TARP ensured the survival of banks and the automobile industry, and increased lending capacity in the financial system. It was not designed to let industries keep loan money without repayment or let the finance industry collapse.
Step-by-step explanation:
The Troubled Asset Relief Program (TARP) was instituted in 2008 to provide stability in the wake of the financial crisis. Among the positive results of TARP, the following statements are true:
- Banks and automobile industries survived, preventing widespread job losses and further economic downturn.
- Lending was able to increase, as TARP funds injected liquidity into the financial system, enabling banks to issue more loans and credit to consumers and businesses.
However, the idea that industries were allowed to keep loan money without repaying it is incorrect. TARP funds were loans that required repayment. Moreover, the finance industry was not allowed to fail; TARP was created to prevent such a failure.