If a Savings and Loan "Pools Risk," Which of the Following

question 186

Multiple Choice

If a savings and loan "pools risk," which of the following must it do?

• A) lend money to a large number of firms
• B) have a large spread between the interest rate it charges borrowers and the interest rate it pays lenders
• C) take funds in from a large number of lenders
• D) Both answers A and C are correct.

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Definitions:

Constitution

The fundamental law or document that establishes the governing framework, principles, and powers of a political entity or nation.

Supremacy Clause

A clause in the United States Constitution establishing that federal law takes precedence over state laws and constitutions when there is a conflict.

Constitution

A fundamental set of principles or established precedents that dictate the governance and operation of a political entity or organization.

Judicial Review

The process by which courts examine the actions of the three branches of government to ensure they comply with the Constitution.