Thrift Institutions Encountered Serious Difficulties in the 1970s Because

question 144

Multiple Choice

Thrift institutions encountered serious difficulties in the 1970s because:

• A)money market mutual funds became serious competitors for their deposits.
• B)the U.S.Treasury deposited larger sums of money than the thrift institutions could effectively manage.
• C)the interest rates they had to pay on deposits began to fall.
• D)each of the largest banks increased the pressure on the thrifts by building a nationwide network of branch banks.
• E)the FDIC increased the reserve requirement for thrifts.

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Definitions:

Honor

In banking and finance, refers to the act of accepting or paying a negotiable instrument when it is presented.

Postdated Check

A check written with a date in the future, preventing it from being cashed or deposited until that date.

Authorized

Having been officially approved or given permission by a relevant authority.

Customer's Account

An account held by a brokerage or financial institution on behalf of a client, for the purpose of trading or managing securities and other financial assets.