Which of the Following Statements Concerning the Problems of Commercial

question 47

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.

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