Why Was the Deposit Interest Rate Ceiling for S&Ls Higher

question 13

Multiple Choice

Why was the deposit interest rate ceiling for S&Ls higher than the ceiling for commercial banks?

• A)to encourage lending to small businesses
• B)to discourage commercial banks from borrowing short term in order to finance long-term mortgage loans
• C)to encourage savings in S&Ls that could then be used to make mortgage loans
• D)because S&Ls were not as safe as banks

---

Definitions:

Company Asset

Resources owned by a company that have value and can be used to meet its financial obligations, including both physical assets (like buildings) and intangible assets (like patents).

Money Owed

Financial liabilities or debts that a person or organization is required to pay to another party.

Single-Entry System

An accounting method where each transaction is recorded only once, either as an income or an expense, making it less complex than double-entry accounting.

Patient Ledger

A detailed record of all financial transactions between a patient and a healthcare provider, including charges, payments, and adjustments.