economics

bailout

Financial assistance given to a failing business or economy to prevent its collapse.

Example

"The government provided a bailout to the bank to prevent the collapse of the financial system."

💡 Memory Tip

Just like bailing water out of a sinking boat — a bailout saves something from going under.

Etymology

From 'bail' — to scoop water out of a sinking boat. A bailout scoops a failing entity back to safety.

Common Misspellings

bail outbaleoutbailuotbaillout

Related Terms

bankruptcystimulus

See Also

insolvencytoo big to fail

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