Banking Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

The U.S. government's response to the credit crisis in 2008 included several significant actions aimed at stabilizing the financial system and restoring confidence. Among these actions were measures such as putting Fannie Mae into conservatorship, which was necessary to ensure the stability of the housing market and provide liquidity to financial institutions. Additionally, the passage of the Troubled Asset Relief Program (TARP) allowed the government to purchase distressed assets and inject capital into struggling banks, helping to restore their solvency.

Another important measure was the temporary increase of the Federal Deposit Insurance Corporation (FDIC) domestic deposit coverage to $250,000. This action was intended to protect depositors and maintain trust in the banking system during a period of extraordinary financial uncertainty.

In contrast, the creation of the "Keep Banks Solvent" agency does not correspond to any real initiative or program established during the response to the credit crisis. While the government took various steps to ensure banks remained operational, there was no specific agency by that name created for this purpose. This distinguishes it from the other actions taken to directly address the challenges posed by the financial crisis.