Savings-and-loan associations suffered losses in the late 1970s when
A. the farm sector of the economy became unprofitable, forcing many farmers into bankruptcy, leading to many bad farm loans.
B. inflation rose, causing short-term interest rates to rise.
C. oil prices rose sharply, causing S&Ls to lose money invested in the oil sector.
D. short-term interest rates fell, causing S&Ls to suffer capital losses on their portfolios of short-term securities.
Answer: B
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