The Unintended Consequences of the Federal Deregulation of the Interest

question 84

Multiple Choice

The unintended consequences of the federal deregulation of the interest paid depositors in the savings and loans was

• A)increasing the interest rates in the national money market
• B)increasing the amount of the loss on existing loans
• C)allowing management to make riskier loans
• D)affecting the interest rates on existing long term loans

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Definitions:

Proprietorships

A type of business entity that is owned and operated by a single individual, without any legal distinction between the owner and the business.

Sole Proprietor

An individual who owns and operates a business alone, bearing unlimited liability for the business's debts and obligations.

Ease Of Formation

The relative simplicity or complexity involved in establishing a new company or business entity.

Treasury Department

A government's division responsible for managing its finances, including producing currency, collecting taxes, and managing the national debt.