Final answer:
In 2008, the U.S. Treasury supported financial institutions through various measures, the answer being 'e. all of the above.' These included purchasing assets, buying preferred stock, guaranteeing money market funds, and increasing the FDIC limit, and were facilitated by programs like TARP and the American Recovery and Reinvestment Act.
Step-by-step explanation:
In 2008, the U.S. Treasury supported financial institutions by purchasing troubled assets, buying preferred stock in some financial institutions, issuing guarantees on money market funds, and increasing the deposit insurance limit, making the correct answer e. all of the above. These measures included the Federal Reserve Bank purchasing both traditional and nontraditional assets off banks' balance sheets, injecting money into the banking system to increase the available funds to lend to the business sector and consumers. Additionally, the Troubled Asset Relief Program (TARP), passed in late 2008, allowed the government to provide cash to banks and helped support General Motors and Chrysler. The American Recovery and Reinvestment Act in early 2009 gave tax rebates to low- and middle-income households to stimulate consumer spending.