Which of the Following Factors Contributed to Failure of Savings

question 126

Multiple Choice

Which of the following factors contributed to failure of Savings and Loan associations in the 1980s?

• A)The high levels of net worth by all savings and loans
• B)Declining real estate values
• C)Avoidance of risky loans by the savings and loans industry
• D)Low interest rates paid to attract deposits

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Definitions:

Cash Flows

Refers to the net amount of cash and cash equivalents being transferred into and out of a business.

Operating Activities

Activities that relate directly to the business's primary operations, such as sales, purchasing, and payroll.

Income Statement

A financial report that shows a company's revenues, expenses, and profits over a specific period of time.

Operating Activities

Business transactions and events related to the core business operations, including revenue and expense transactions that affect net income.