The Policy of Regulatory Forbearance

question 24

Multiple Choice

The policy of regulatory forbearance

• A) meant delaying the closing of "zombie S&Ls" as their losses mounted during the 1980s.
• B) benefited "zombie S&Ls" at the expense of healthy S&Ls, as healthy institutions lost deposits to insolvent institutions.
• C) had the advantage of benefiting healthy S&Ls by giving them the opportunity to attract deposits that began to leave the "zombie S&Ls."
• D) did both A and B of the above.
• E) did both A and C of the above.

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