Many S&Ls Failed in the 1980s Mainly Because

question 148

Multiple Choice

Many S&Ls failed in the 1980s mainly because:

• A)foreign governments defaulted on bonds that the thrifts were holding.
• B)many of their risky real estate loans went bad.
• C)Congress gave the home mortgage business to two government agencies, Fannie Mae and Freddie Mac.
• D)the Glass-Steagall Act was passed.

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Definitions:

Transfer Agents

Organizations or individuals responsible for maintaining records of securities owners and managing the transfer of stock or bonds between parties.

Retained Earnings

Definition: The portion of a business's profits not distributed as dividends to shareholders but instead retained for reinvestment or to pay off debt.

Cash Dividend

A payment of earnings declared by a company's board of directors, distributed among shareholders in the form of cash.

Cash Dividends

Payments made to shareholders out of a corporation's earnings in the form of cash.