Taxpayers were served poorly by thrift regulators in the 1980s. This poor performance cannot be explained by
A) regulators' desire to escape blame for poor performance, leading to a perverse strategy of "bureaucratic gambling."
B) regulators' incentives to accede to pressures imposed by politicians, who sought to keep regulators from imposing tough regulations on institutions that were major campaign contributors.
C) Congress's dogged determination to protect taxpayers from the unsound banking practices of managers at many of the nation's savings and loans.
D) politicians strong incentives to act in their own interests rather than the interests of the taxpayers.
C
You might also like to view...
Refer to Figure 22.3 below. Suppose that the supply curve is constant at $10. Suppose further that the before-tax demand curve D B can be written as B = 20 - P/2, where B is the number of structures per year and P is the price.
Under the Term Auction Facility (TAF), the rate that a depository institution pays on a loan from the Fed is determined by
a. the federal funds rate. b. the discount rate. c. the real rate of interest. d. a bidding process allocating the funds to those willing to pay the highest rates.
Which one of the following was a basic economic conflict between the North and the South in the years preceding the Civil War?
A. The North opposed the high protective tariffs the South supported to protect its manufactured goods. B. The South opposed the high protective tariffs the North supported to protect its manufactured goods. C. The North demanded the abolition of slavery. D. The North opposed the building of a transcontinental railroad.
Briefly explain the factors of production and give an example of each
What will be an ideal response?