(I)S&Ls' Net Worth Ratio Is About the Same as That

question 70

Multiple Choice

(I) S&Ls' net worth ratio is about the same as that of commercial banks.
(II) Goodwill accounts for a majority of S&Ls' capital.

• A) (I) is true, (II) false.
• B) (I) is false, (II) true.
• C) Both are true.
• D) Both are false.

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Definitions:

Cyclical Unemployment

Cyclical unemployment is the component of overall unemployment that results from economic recessions or expansions, influenced by the business cycle.

Economy

An area or system in which goods and services are produced, distributed, and consumed by various agents, encompassing local to global scales.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Unemployment Compensation Benefits

Payments made to individuals who are temporarily out of work, providing financial support during unemployment.