Which of the Below Statements Is FALSE

question 22

Multiple Choice

Which of the below statements is FALSE?

• A) There are two sets of capital adequacy standards for S&Ls as for banks.
• B) Until the early 2000s, S&Ls and all other lenders financed housing through traditional mortgages at interest rates fixed for the life of the loan.
• C) For S&Ls, if interest rates rise above the interest rate on the mortgage loan, a negative spread will result, which must result eventually in insolvency.
• D) With the high volatility of interest rates in the 1970s, followed by the historically high level of interest rates in the early 1980s, all depository institutions began to lose funds to competitors exempt from ceilings, such as the newly formed money market funds; this development forced some increase in ceilings.

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Definitions:

Preferences

Individuals' tendencies to favor certain options, choices, or experiences over others, based on personal tastes or values.

Big Five

A model describing human personality through five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Personality Factors

Key traits or characteristics that constitute an individual's distinct personality, influencing behavior and attitudes.

Satisfaction

Satisfaction is the feeling of contentment or fulfillment that comes from meeting one's needs, expectations, or achieving a particular goal.