Question

    Which term is used for extending financial support to a

    company or a country facing a potential bankruptcy threat?
    A Austerity Correct Answer Incorrect Answer
    B Bailout Correct Answer Incorrect Answer
    C Autarky Correct Answer Incorrect Answer
    D Conglomerate Correct Answer Incorrect Answer

    Solution

    Bailout  is a general term for extending financial support to a company or a country facing a potential bankruptcy threat. It can take the form of loans, cash, bonds, or stock purchases. A bailout may or may not require reimbursement and is often accompanied by greater government oversee and regulations. The reason for bailout is to support an industry that may be affecting millions of people internationally and could be on the verge of bankruptcy due to prolonged financial crises.

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