When the government eliminated Regulation Q in the 1980s, allowing S&Ls to raise interest rates in order to keep their depositors from switching their deposits to competing investment houses, many S&Ls were doomed because

a. they were locked into fixed, long-term mortgage loans at rates often lower than what they paid depositors, forcing them into more risky but higher interest-yielding loanventures
b. they refused to finance (loan) speculative land development projects at a time when land values were skyrocketing, losing the opportunity to recoup losses caused by theelimination of Regulation Q
c. they ventured abroad, mainly to the Middle East, for prospective borrowers and fell victim to the political instability of those ventures
d. the Federal Reserve also raised interest rates, causing a general slowdown in the economy, which eventually affected S&L profitability
e. member savings and loans quit the FSLIC in protest of the new rules


A

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