Regulatory Forbearance

Multiple Choice

Regulatory forbearance

A) meant delaying the closing of "zombie S&Ls" as their losses mounted during the 1980s.
B) had the advantage of benefiting healthy S&Ls at the expense of "zombie S&Ls," as insolvent institutions lost deposits to health institutions.
C) had the advantage of permitting many insolvent S&Ls the opportunity to return to profitability,saving the FSLIC billions of dollars.
D) increased adverse selection dramatically.