Question

What was the effect of the Troubled Asset Relief Program?

A. It stimulated the economy by providing citizens with large tax bonuses.
B. It caused an economic recession by failing to help citizens pay mortgages.
C. It weakened public trust in the stock market by exposing corruption.
D. It prevented an economic collapse by giving loans to at-risk banks.

Answer 1

The Trouble Asset Relief Program is a program of the United States government to purchase toxic assets and equity from financial institutions to strengthen its financial sector that was passed by Congress and signed into law by President George W. Bush on October 3, 2008. It was a component of the government measures in 2008 to address the subprime mortgage crisis. The TARP originally authorized expenditures of $700 billion.