Taxpayers Were Served Poorly by Thrift Regulators in the 1980s

question 22

Multiple Choice

Taxpayers were served poorly by thrift regulators in the 1980s. This poor performance cannot be explained by

• A)regulators' desire to escape blame for poor performance,leading to a perverse strategy of "bureaucratic gambling."
• B)regulators' incentives to accede to pressures imposed by politicians,who sought to keep regulators from imposing tough regulations on institutions that were major campaign contributors.
• C)Congress's dogged determination to protect taxpayers from the unsound banking practices of managers at many of the nation's savings and loans.
• D)politicians strong incentives to act in their own interests rather than the interests of the taxpayers.

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Definitions:

Standard Deviation

A statistical measurement that shows how much variation or dispersion exists from the average (mean) value.

Frequency Polygon

A graphical representation of the distribution of numerical data. It is usually a line that connects points representing the frequencies of various categories or intervals of data.

Class Intervals

Ranges of values into which data points are grouped for frequency distribution analysis.

Histogram

A type of bar chart used in statistics to represent the distribution of data by showing the number of data points that fall within a range of values.