Which of the Following Was NOT a Major Reason for the Savings

question 30

Multiple Choice

Which of the following was NOT a major reason for the savings institution crisis in the late 1980s?

• A)large losses on real estate loans
• B)large losses on loans to less-developed countries
• C)fraud
• D)illiquidity
• E)increased interest expenses

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Definitions:

Restricted Fund Method

An accounting practice used for reporting resources that have been restricted by donors or grantors.

Externally Restricted Contribution

Funds received by an organization that are designated for specific purposes by the donor, restricting their use by the recipient.

General Fund

The principal fund of a governmental entity, covering most basic operational activities and services.

Deferral Method

An accounting practice where revenue or expenses are recognized at a date later than when they were initially incurred, often applied to revenue received in advance or prepayments of expenses.