Question

tARP and other lender-of-last-resort programs implemented by the Fed in response to the financial crisis of 2007 and 2008 Multiple Choice were designed to offset the moral hazard created by the TARP and other bailout programs. have been little used and therefore are ineffective. severely depleted the assets of the Federal Reserve. increased the moral hazard problem by limiting losses from bad financial decisions.

Answer 1

Answer:

Option D would be the correct choice.

Explanation:

• The deeply disturbed capital recovery plan was an effort to remove the distressed assets among investment banks everything which gave the treasurer the ability to buy risky assets from corporate various financial institutions.
• The program proved ineffective as when the allocated cash wasn't used to support consumers, because although the firms weren't even investing because of immoral incentives.

All other choices don't apply to a particular task. So option D seemed to be the right alternative.