Thrift Institutions Encountered Serious Difficulties in the 1970s Because

question 144

Multiple Choice

Thrift institutions encountered serious difficulties in the 1970s because:

• A)money market mutual funds became serious competitors for their deposits.
• B)the U.S.Treasury deposited larger sums of money than the thrift institutions could effectively manage.
• C)the interest rates they had to pay on deposits began to fall.
• D)each of the largest banks increased the pressure on the thrifts by building a nationwide network of branch banks.
• E)the FDIC increased the reserve requirement for thrifts.

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Definitions:

LLP

Limited Liability Partnership, a legal structure for a business where partners' liabilities are limited to their investment in the partnership.

Continuing Liability

An ongoing financial or legal responsibility that does not end upon the termination of a contract or agreement.

Nonwrongfully Dissociated

Pertains to a situation where a partner leaves a partnership in accordance with the terms of the partnership agreement or without causing harm to the partnership’s ability to continue.

Demand Payment

A request for the payment of money owed, usually in a formal or legal context.