Thrift Institutions Encountered Serious Difficulties in the 1970s Because

question 123

Multiple Choice

Thrift institutions encountered serious difficulties in the 1970s because

• A)money market mutual funds became serious competitors for their deposits
• B)the U.S.Treasury deposited larger sums of money than the thrift institutions could effectively manage
• C)interest rates they had to pay on deposits began to fall
• D)each of the largest banks increased the pressure on the thrifts by building a nationwide network of branch banks
• E)the FDIC increased the reserve requirement for thrifts

---

Definitions:

Backward Integration

A business strategy where a company expands its role to fulfill tasks formerly completed by businesses up the supply chain.

Forward Integration

A business strategy where a company extends its operations by moving towards the direct control of its distribution or supply chain further down the production process.

Retailer

A business or person that sells goods to the consumer, as opposed to a wholesaler or supplier.

Retailer-sponsored Cooperative

A group of independent retailers who collectively purchase goods, share marketing efforts, and distribution channels to compete with larger chains effectively.