Multiple Choice
Which of the following statements concerning the problems of commercial banks during the 1980s is NOT true?
A) The rising cost of funds led banks to make riskier loans.
B) Interest rate risk was at least as great a problem for banks as for thrifts.
C) Banks increased their exposure to risk through their investments in HLTs.
D) By limiting diversification, branching restrictions contributed to the increase in bank failures.
Correct Answer:
Verified
Correct Answer:
Verified
Q42: The 1981-1982 recession hurt thrifts by<br>A)lowering interest
Q43: NOW accounts were developed in order to<br>A)circumvent
Q44: Negotiable certificates of deposit were developed in
Q45: The greatest problem with bank capital requirements
Q46: In 1995, the FDIC deposit insurance premiums
Q48: The first stage in the regulatory process
Q49: The second stage in the regulatory process
Q50: Adjustable-rate mortgages do not fully eliminate interest-rate
Q51: The weakness of the Fed's actions during
Q52: Negotiable certificates of deposit differ from demand