Which One of the Following Statements Is True

question 142

Multiple Choice

Which one of the following statements is true?

• A) The savings and loan crisis of the 1990s was due to the big U.S. budget deficit.
• B) Deposit insurance guarantees savings up to $1,000,000.
• C) Savings and loan institutions were very profitable during the 1970s when there was high inflation.
• D) Deposit insurance was created to prevent bank runs from occurring.

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Definitions:

Managerial Responsibility

The obligation of managers to make decisions, supervise subordinates, and implement activities that contribute to achieving the organization's objectives.

Variable Cost

Costs that vary directly with the level of production or output, such as materials and labor used in the production process.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, providing a more useful comparison for actual versus budgeted performance.

Budgeted Costs

Estimated financial plan for expenditures over a specified period.