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:

Contrast

In statistics, a method used to compare different treatments or groups by defining specific linear combinations of parameters estimated in a model.

Confidence Limits

The upper and lower boundaries of a confidence interval, which estimate the range within which a population parameter lies with a certain level of confidence.

Population Mean

The average of all the values in a population, which is the total set of individuals, items, or data under study.

Sample Size

The number of observations or units included in a sample, which impacts the precision of statistical estimates.