During the Early 1980s, Regulators Kept Many Insolvent or Nearly

question 91

Multiple Choice

During the early 1980s, regulators kept many insolvent or nearly insolvent thrifts from being closed by

• A)underestimating the value of goodwill that thrifts carried on their books as an asset.
• B)allowing many assets to be carried on the books at face value rather than market value.
• C)reducing the face value of many mortgages to current market value.
• D)allowing them to pay interest rates to depositors that were below the going market rates.

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Definitions:

Deviations

Differences between observed values and some reference value, often the mean of the set.

Conservative Estimates

Estimates made cautiously to ensure that the actual value is not likely to exceed the estimated value.

Sample Statistics

Statistics calculated from a sample and used to estimate parameters of the total population.

Exclusive Range

A range of values that does not include the upper and lower bounds specified.