According to the Text,the Competitive Equality in Banking Act of 1987

question 10

Multiple Choice

According to the text,the Competitive Equality in Banking Act of 1987

• A) turned the thrift industry around by providing the necessary funds to close the "zombie S&Ls."
• B) lowered the cost of bailing out the S&Ls by quickly closing "zombie S&Ls" before they could cause other thrifts to fail.
• C) failed to provide the funds necessary to close ailing S&Ls, and actually encouraged regulators to continue to pursue regulatory forbearance.
• D) did both A and B of the above.

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Definitions:

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation or a creditor relationship with a government or corporation.

Perpetuity

An annuity that pays a constant stream of cash flows indefinitely.

Duration

An indicator of how a bond or debt security's price is affected by interest rate fluctuations, usually stated in terms of years.

Yield

The income return on an investment, such as the interest or dividends received, expressed as a percentage of the investment's cost or current market value.