The Bailout of the Savings and Loan Industry Was Much

question 15

Multiple Choice

The bailout of the savings and loan industry was much delayed and,therefore,much more costly to taxpayers because

• A) regulators initially attempted to downplay the seriousness of problems within the thrift industry.
• B) politicians who received generous campaign contributions from the savings and loan industry hoped that the problems in the industry would ease over time.
• C) Congress did not wait long enough for many of the problems in the thrift industry to correct themselves.
• D) of all of the above.
• E) of only A and B of the above.

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Definitions:

50% Interest

A financial or ownership stake in an entity or asset, where the holder owns or is entitled to one-half of the interest in the subject matter.

Equity Method

An accounting technique used to record investments in other companies, where the investment is significant but does not grant control over the company.

Significant Influence

The ability to affect the financial and operating policies of another entity through ownership, contract, or other means, without having full control or ownership.

Other Revenue

Income a business earns from activities not related to its primary operations, such as rental income or interest earned.