Question

What was the purpose of the Troubled Assets Relief Program (TARP) in late 2008?

The US government raised taxes in an attempt to cover the costs of relief programs.

The US government paid off the debts on defaulted mortage loans.

The US government printed more money so people could buy stocks.

The US government financially rescued failing banks to stabilize a struggling economy.

Answer 1

The correct answer is The US government financially rescued failing banks to stabilize a struggling economy.

The Troubled Asset Relief Program was a program signed to relief the economy after the subprime mortgage crisis. The plan consisted of the US government purchasing “troubled assets” so the financial system would be restored and stabilized. The US Treasury announced in December 2013 that the program was able to prevent the auto industry from failing and saved 1 million jobs.

Answer 2

The purpose of that program is The US government financially rescued failing banks to stabilize a struggling economy.
The government believe that the roles of banks are crucial in handling the inflation rate and providing loans that are necessary for local entrepreneurs in surviving the struggling economic period.