During the 1980s, Instead of Closing Insolvent Thrifts, the Federal

question 13

Multiple Choice

During the 1980s, instead of closing insolvent thrifts, the Federal Home Loan Bank Board regulators often ignored the problem, allowing the failed institutions to continue. How did these so-called zombie institutions infect healthy institutions?

• A)Zombie institutions paid high interest rates to attract savers, forcing healthy institutions to raise their rates as well.
• B)Zombie institutions offered loans with high interest rates; healthy institutions had to compete by doing the same.
• C)Investors would move funds from the zombie banks into the healthy banks.
• D)Managers would leave zombie institutions and get jobs at healthy banks.

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The opening in the face of a human or animal, used for eating, breathing, and speaking.

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The process by which the sexual organs and secondary sex characteristics develop differently in males and females, influenced by genetic and hormonal factors.

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The various parts of the brain, each responsible for different functions, such as the cerebrum for thought and action, the cerebellum for movement, and the limbic system for emotions.