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:

Standard Markup Pricing

A pricing method that involves adding a fixed percentage to the cost of goods to determine their selling price.

Bait and Switch

A deceptive marketing practice wherein a company advertises a product at a low price to attract customers, only to persuade them to purchase a more expensive item when they arrive.

Deceptive Pricing

A misleading marketing practice where prices are presented in a way that falsely suggests a bargain, hiding the true costs involved.

Yield Management Pricing

A variable pricing strategy, based on understanding, anticipating, and influencing consumer behavior, to maximize revenue from a fixed, perishable resource.