Which of the Following Was Not a Major Reason for the Savings

question 57

Multiple Choice

Which of the following was not a major reason for the savings institution crisis?

• A)a large proportion of loan losses on real estate loans
• B)a large proportion of loan losses on loans by SIs to less-developed countries
• C)fraud
• D)illiquidity
• E)increased interest expenses

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Definitions:

Excess Supply

A situation where the quantity of a good or service supplied exceeds the quantity demanded at the current price, often leading to a decrease in prices.

Blu-Ray Disc Rentals

The service of lending Blu-Ray discs, which contain high-definition movies or other content, to customers for a temporary period.

Rental Price

The cost paid to rent a property or equipment for a specified period of time.

Market Equilibrium

A market scenario in which the equilibrium between demand and supply results in stable prices.