Which of the Following Was Not a Major Reason for the Savings

question 33

Multiple Choice

Which of the following was not a major reason for the savings institution crisis in the late 1980s?

• A) large losses on real estate loans
• B) large losses on loans to less-developed countries
• C) fraud
• D) illiquidity
• E) increased interest expenses

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Definitions:

Cognitive Flexibility

The mental ability to switch between thinking about two different concepts, or to think about multiple concepts simultaneously.

Transductive Reasoning

A form of reasoning where conclusions are drawn based on specific examples or instances, rather than through abstract logic, prevalent in young children.

Class Inclusion

The principle that one category or class of things can include several subclasses.

Subclasses

Categories that are subordinate to a larger class, providing a means to organize elements into hierarchies or specializations.