Examiners from the Federal Home Loan Bank Board of San

question 56

Multiple Choice

Examiners from the Federal Home Loan Bank Board of San Francisco recommended that Lincoln Savings and Loan be seized when they discovered that

• A) officials at the thrift had attempted to mislead them.
• B) it had exceeded the 10 percent limit on equity investments by $600 million.
• C) its owner, Charles Keating, had been convicted of embezzlement ten years before he purchased the thrift.
• D) all of the above occurred.
• E) only A and B of the above occurred.

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Definitions:

Verify

To check or test the accuracy or correctness of something.

Pair of Equations

Represents two equations involving the same variables, often solved simultaneously to find the values of those variables.

Annual Net Income

Annual Net Income refers to the amount of money earned in one fiscal year after all expenses and taxes have been subtracted.

Partnership

A legal form of business operation between two or more individuals who share management and profits or losses.