Asked by Jessica Lapnow on May 04, 2024
Verified
Each of the following hurt the savings and loan industry in the 1980s except
A) the recession of 1981-1982.
B) falling real estate prices.
C) the falling prices of junk bonds.
D) falling interest rates.
Junk Bonds
High-risk, high-yield bonds issued by companies with lower credit ratings, reflecting a greater risk of default but offering higher returns to compensate investors.
Real Estate Prices
The amount of money required to purchase ownership or rental rights to land and buildings.
- Examine the effects of hazardous lending and interest rates on banking organizations.
Verified Answer
MM
Michael McReynoldsMay 11, 2024
Final Answer :
D
Explanation :
Falling interest rates would have actually benefited the savings and loan industry by allowing them to borrow funds at lower rates and make more profitable loans. The other factors listed all had negative impacts on the industry.
Learning Objectives
- Examine the effects of hazardous lending and interest rates on banking organizations.