Savings and Loans Lost a Total of $10 Billion in 1981-1982

Multiple Choice

Savings and loans lost a total of $10 billion in 1981-1982 due to a combination of rising interest rates in 1979-1981 and

A) the recession of 1981-1982 that reduced real estate prices enough to cause significant loan defaults.
B) the regulatory restrictions enacted by Congress in 1981 and 1982.
C) the loss of market share to commercial banks that were allowed to compete directly with thrifts in the real estate market.
D) the acceleration of inflation in 1981-1982 that caused thrifts to lose additional funds to money market mutual funds.