Final answer:
The Troubled Asset Relief Program (TARP) is true to have provided cash injections or required sales of preferred stock to the Treasury by major banks for stabilization during the financial crisis of 2008.
Therefore, this statement is true.
Step-by-step explanation:
Under the Troubled Asset Relief Program (TARP), most of the big banks in the U.S. either needed a cash infusion from the Treasury or were forced to sell preferred stock to the Treasury in order to stay in business. The statement is True. TARP, enacted in late 2008, was designed to stabilize the collapsing financial market by allowing the government to inject cash into troubled banks and other financial institutions. In addition, it supported major companies like General Motors and Chrysler amidst possible bankruptcy and job losses in their supply chains. An important aspect of TARP was the provision of emergency loans to prevent the collapse of the auto industry. Consequently, this program played a crucial role in preventing a more severe economic downturn and assisted in stabilizing the U.S. economy during a critical period.