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:

Double Taxation

The imposition of taxes on the same income, asset, or financial transaction at two different levels of government, typically seen with corporate income taxed at both the corporate and shareholder levels.

Dividends Received

Distributions from a corporation to its shareholders, often sourced from the business's income.

Consumption Tax

A tax on the purchase of goods or services, which can be proportional, progressive, or regressive, and is levied on the expenditure on goods and services.

Sales Tax

A government-imposed charge on goods and services purchased, collected at the point of sale.