The S&L crisis in the late 1970s and early 1980s was made much worse by
A. moral hazard, when regulators failed to close bankrupt S&Ls, which in turn caused a credit crunch.
B. adverse selection, when commercial banks were allowed to buy financially sound S&Ls but did not buy bankrupt S&Ls.
C. asymmetric information, because the government did not realize the bad financial condition of the S&Ls.
D. the regulatory dialectic.
Answer: A
You might also like to view...
Similar to financial accounting reports, management accounting reports are standardized in format
Indicate whether the statement is true or false
Where there is no agreement to share profits in a partnership, but one partner has devoted twice
as much time to the partnership as the other over the course of the year, how are profits to be split? A) Equally B) In the ratio of time devoted to the partnership C) Fairly, as determined by a court or other neutral party D) In accordance with which partner earned them E) The profits must remain in the partnership and not be distributed
A fad is an idea that is fashionable only to certain groups who are enthusiastic about it.
Answer the following statement true (T) or false (F)
A silk screen T-shirt Company buys T-shirts and places designs on them. The cost of the T-shirt is $2.00 . Placing the designs on shirts costs $3.00 . The shirts sell for $12 . Unsold shirts are donated to charity. The monthly demand for T-shirts with designs runs at a mean of 400 and a standard deviation of 50 T-shirts and is approximately normally distributed. What is the profit maximizing
number of T-shirts to purchase each month? ____________________ T-shirts Fill in the blank(s) with correct word