Thrift Institutions' Importance as a Source of Funds for Borrowers

question 32

Multiple Choice

Thrift institutions' importance as a source of funds for borrowers

• A) has shrunk from around 40 percent of total credit advanced in the late 1970s to below 30 percent today.
• B) has shrunk from over 20 percent of total credit advanced in the late 1970s to below 10 percent today.
• C) has expanded dramatically, from around 15 percent of total credit advanced in the late 1970s to above 25 percent today.
• D) has expanded dramatically, from around 15 percent of total credit advanced in the late 1970s to above 30 percent today.

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Definitions:

Long-term Securities

Financial instruments that have a maturity period exceeding one year and include bonds, debentures, and other investment vehicles.

Credit Union

A member-owned financial cooperative that provides traditional banking services.

Reserve Requirement

A regulation set by central banks that determines the minimum amount of reserves a bank must hold against deposits, influencing the bank's capacity to lend.

Fed

Short for the Federal Reserve System, which is the central banking system of the United States responsible for setting monetary policy.