With the Troubled Asset Relief Program (TARP), the U.S.Treasury provided funds to banks in exchange for stock.

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Quizplus · Accepted Answer

This is correct. TARP, also known as the Emergency Economic Stabilization Act of 2008, allowed the U.S. Treasury to purchase troubled assets, such as mortgage-backed securities, from banks and other financial institutions in order to stabilize the financial system. However, in many cases, the funds provided to banks were in the form of equity or preferred stock, rather than direct loans.