The Government Granted Thrifts Greater Powers in the Early 1980s

question 13

Multiple Choice

The government granted thrifts greater powers in the early 1980s in hopes of turning the industry's problems around.These powers

• A) required greater expertise in managing risk than many thrift managers possessed.
• B) encouraged thrifts to expand lending rapidly in real estate, increasing their exposure to risk.
• C) expanded the scope and complexity of thrift lending activities that went beyond what regulators could effectively monitor, given their limited resources.
• D) did all of the above.
• E) did only A and B of the above.

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Definitions:

Agoraphobia

A fear of being in situations in which help might not be available or escape might be difficult or embarrassing.

Obsession

A persistent, intrusive, and unwanted thought, urge, or image that causes significant anxiety or distress.

Compulsion

An uncontrollable urge to perform an act repeatedly, often a symptom of obsessive-compulsive disorder (OCD).

Obsessive-Compulsive Disorder

A mental disorder characterized by unwanted repetitive thoughts (obsessions) and/or actions (compulsions).