Regulatory Forbearance

question 79

Multiple Choice

Regulatory forbearance

• A)meant delaying the closing of "zombie S&Ls" as their losses mounted during the 1980s.
• B)had the advantage of benefiting healthy S&Ls at the expense of "zombie S&Ls," as insolvent institutions lost deposits to health institutions.
• C)had the advantage of permitting many insolvent S&Ls the opportunity to return to profitability,saving the FSLIC billions of dollars.
• D)increased adverse selection dramatically.

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Definitions:

State Law

Legal provisions enacted by a state's legislative body that govern the behavior of residents and organizations within that state's borders.

Broken Seal

A condition indicating that a seal or closure preventing access or contamination has been compromised or damaged.

Indirect Claim Message

Communication that presents a request or claim in a less direct manner, often to soften the impact or be polite.

Defective Component

A part or element in a piece of equipment or system that is faulty or malfunctioning.