That Taxpayers Were Poorly Served by Thrift Regulators in the 1980s

question 18

Multiple Choice

That taxpayers were poorly served by thrift regulators in the 1980s is now quite clear.This poor performance is explained by

• A) regulators' desire to escape blame for poor performance, leading to a perverse strategy of "regulatory gambling."
• B) regulators' incentives to accede to pressures imposed by politicians, who sought to keep regulators from imposing tough regulations on institutions that were major campaign contributors.
• C) Congress's unwillingness to appropriate sufficient funds to permit regulators to examine the many thrift institutions that needed monitoring.
• D) all of the above.
• E) only A and B of the above.

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Definitions:

Foreign Investments

Investments made by individuals, companies, or governments in business interests in a country other than their own, often through direct investments or purchasing stocks.

Economic Policy

Actions taken by government to influence its economy through taxation, spending decisions, and fiscal management.

Multinational Corporation

A large company that operates in multiple countries around the world, beyond its home country.

Facilities

Buildings, equipment, services, and other resources provided for a specific purpose or activity.