The Advent of Computers and Deregulation of Banking in the 1970s

question 29

Multiple Choice

The advent of computers and deregulation of banking in the 1970s caused which of the following financial tools to burst on the scene in the United States, transforming the financial environment?

• A) online banking
• B) home equity loans
• C) traveler's checks
• D) credit cards
• E) student loans

---

Definitions:

Negative Expected Value

A statistical condition where the anticipated result of an investment is less than the initial cost.

Moral Hazard

The risk that one party to a transaction has not entered into the contract in good faith or has an incentive to take unusual risks because the costs are not borne by that party.

Flat Salary

A flat salary is a fixed amount of pay received by an employee, regardless of the number of hours worked or the quantity of output.

Car Dealership

A business that sells new or used cars at the retail level, typically based on a dealership contract with an automaker or its sales subsidiary.