To Make It Easier for S&Ls to Compete with Banks

question 130

True/False

To make it easier for S&Ls to compete with banks in the late 1970s, Congress allowed the thrifts to undertake riskier investments in addition to home mortgages.

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Definitions:

Issued

Pertains to securities or other financial instruments that have been officially offered to the public for subscription or sale.

Bond Issue

The process by which a corporation or government raises funds by selling bonds to investors.

Effective Interest Method

A technique used in accounting to allocate the interest expense or income of a bond over its lifetime based on the bond's carrying amount at each interest period.