Which of the following events did not contribute to the high rate of savings and loan failures in the 1980s and 1990s?
a. The bankruptcy of the FDIC
b. Deregulation of the banking industry that allowed investment houses to compete with banks and S&Ls for depositors
c. The elimination of Regulation Q
d. The entry of S&Ls into riskier loan markets
e. Substantial fraud in lending activities
A
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Which of the following is correct for a single-price monopoly?
i. The firm can determine the quantity it produces and the price it charges. ii. It would never profitably produce output in the inelastic range of its demand. iii. Its marginal revenue is less than price. A) i only B) i and iii C) ii only D) ii and iii E) i, ii, and iii
When all the costs and benefits of a transaction are borne by the participants of that transaction, _____
a. the market outcome will be inefficient b. the private costs and social costs are identical c. negative externalities exist d. positive externalities exist e. the free rider problem arises
Suppose that the Bureau of Labor Statistics predicts that the number of jobs for dental hygienists will grow faster than most occupations while the number of jobs for bookbinders will decline. This change in the labor market could lead to
a. frictional unemployment created by efficiency wages. b. structural unemployment created by efficiency wages. c. frictional unemployment created by sectoral shifts. d. structural unemployment created by sectoral shifts.
According to classical macroeconomic theory, changes in the money supply affect
a. real GDP and the price level. b. real GDP but not the price level. c. the price level, but not real GDP. d. neither the price level nor real GDP.