That Several Hundred S&Ls Were Not Even Examined Once in the Period

question 55

Multiple Choice

That several hundred S&Ls were not even examined once in the period January 1984 through June 1986 can be explained by

• A)Congress's unwillingness to allocate the necessary funds to thrift regulators.
• B)regulators' reluctance to find the specific problem thrifts that they knew existed.
• C)slower growth in lending meant that less regulation was needed.
• D)Congress's unwillingness to listen to campaign contributors.

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Definitions:

Call Premium

Amount by which the call price exceeds the par value of the bond.

Par

This term typically refers to a financial instrument's nominal or face value, as opposed to its market value or price.

Negative Covenant

A clause in a contract that prohibits a borrower from taking certain actions, intended to protect the interests of the lender by maintaining the borrower's financial stability.

Current Ratio

A financial ratio indicating the capacity of a firm to cover its short-term liabilities with its current assets.