The correct answer is C.

Answer C is the only one which is not a stress test exercise, but a mechanism to supply capital to banks in need. It is also not connected to a particular year, and the correct full name is “U.S. Treasury’s CAP”.

Things to Remember

• Stress testing is a risk management technique used to evaluate the potential impact of financial or economic shocks on a firm's financial condition.
• Stress tests are typically conducted by regulatory authorities to ensure that financial institutions have enough capital to withstand adverse scenarios.
• SCAP 2009, CEBS 2010, and CCAR 2011/2012 are all examples of stress test exercises conducted by authoritative bodies to assess the resilience of banks.
• Stress testing helps identify vulnerabilities in a financial system and allows institutions to take corrective actions to mitigate risks.
• CCAR (Comprehensive Capital Analysis and Review) is an annual exercise by the Federal Reserve to assess the capital adequacy of large bank holding companies.