Which of the Following Are Reasons That Explain Why Regulators

question 69

Multiple Choice

Which of the following are reasons that explain why regulators pursued a policy of regulatory forbearance toward thrifts in the early 1980s?

• A) Regulators knew that the FSLIC did not have sufficient funds to close insolvent S&Ls and pay off their depositors.
• B) Regulators were probably too close to the people they were supposed to be regulating to close down thrifts and put them out of business.
• C) Regulators preferred to sweep the problems that thrifts were suffering under the rug in the hope that they would go away as the economy improved.
• D) All of the above explain regulatory forbearance.
• E) Only A and B of the above explain regulatory forbearance.

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Definitions:

Common Stock Quote

The current price at which a share of common stock is trading on the stock market.

Dividends

Profits paid out by a corporation to its shareholders as distributions.

Payments In Kind

Transactions where the payment is made in goods, services, or other non-cash forms instead of monetary payment.

Retained Earnings

The portion of net income that a company retains instead of distributing to shareholders as dividends, often used for reinvestment in the business or to pay off debt.