Taxpayers Were Served Poorly by Thrift Regulators in the 1980s

question 22

Multiple Choice

Taxpayers were served poorly by thrift regulators in the 1980s. This poor performance cannot be explained by

• A)regulators' desire to escape blame for poor performance,leading to a perverse strategy of "bureaucratic gambling."
• B)regulators' incentives to accede to pressures imposed by politicians,who sought to keep regulators from imposing tough regulations on institutions that were major campaign contributors.
• C)Congress's dogged determination to protect taxpayers from the unsound banking practices of managers at many of the nation's savings and loans.
• D)politicians strong incentives to act in their own interests rather than the interests of the taxpayers.

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Definitions:

DNA Replication

The biological process of producing two identical replicas of DNA from one original DNA molecule, essential for cell division.

Complementary Base Pairing

The pairing of bases by hydrogen bond formation in double-stranded nucleic acids according to the base pairing rules: adenine pairs with thymine (in DNA) or uracil (in RNA), and guanine pairs with cytosine.

Purines

A group of heterocyclic aromatic organic compounds, including adenine and guanine, that are key components of DNA and RNA.

Pyrimidines

A type of organic compound, characterized by a single six-membered ring, that includes cytosine, thymine, and uracil, essential components of nucleic acids.