Which of the Following Contributed the Least to the Collapse

question 17

Multiple Choice

Which of the following contributed the least to the collapse of the FSLIC/FDIC deposit insurance funds?

• A)An increase in interest rate volatility.
• B)Enhanced investment powers granted to thrifts.
• C)Fraudulent behavior induced by the greed of the decade of the 80s.
• D)Fraudulent behavior induced by ineffective regulatory incentives.
• E)The extension of deposit insurance to uninsured depositors.

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Definitions:

Frankfurt Parliament

The Frankfurt Parliament was an assembly convened in 1848 in Frankfurt, aiming to unify the German states and create a constitution for a unified Germany.

Upper-middle-class

A social class in society that is above the middle class, often including professionals, managers, and business owners who enjoy high economic status and cultural influence.

Third Estate

The common people of France under the ancien régime, distinct from the clergy (First Estate) and the nobility (Second Estate), who played a key role in the French Revolution.

Frankfurt Parliament

An assembly of German delegates from various states in 1848-1849, aiming to unify the German states and create a national constitution.