Thrifts Suffered Problems in the 1970s as

question 4

Multiple Choice

Thrifts suffered problems in the 1970s as

• A) market interest rates rose above the rates thrifts could pay on deposits and savings accounts.
• B) thrift customers moved their funds from thrifts to money market mutual funds.
• C) government regulators severely limited the scope of activities that thrifts could undertake to grow their way out of trouble.
• D) all of the above occurred.
• E) only A and B of the above occurred.

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Definitions:

Natural Monopoly

A market situation where a single firm can supply the entire market more efficiently than multiple firms due to high fixed or start-up costs.

Producing Electricity

The process of generating electric power from sources of primary energy such as coal, natural gas, nuclear, solar, or wind energy.

Economic Inefficiency

A situation where resources are not utilized in the most productive way, leading to lost potential output or welfare.

Profit-Maximizing Price

The price at which a company can make the most profit, considering the balance between price and quantity sold.