This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Explain the forces that caused the savings and loan debacle in the latter half of the 1980s. What ... (Read 51 times)

sarasara

  • Hero Member
  • *****
  • Posts: 521
on: Jun 29, 2018
Explain the forces that caused the savings and loan debacle in the latter half of the 1980s.
 
  What will be an ideal response?

Question 2

Suppose that in 2012, real GDP is larger than nominal GDP. The GDP price index in 2012 is definitely
 
  A) less than 100.
  B) larger than the GDP price index in 2012.
  C) greater than 100.
  D) negative.
  E) less than the GDP price index in 2012.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

DylanD1323

  • Sr. Member
  • ****
  • Posts: 314
Reply #1 on: Jun 29, 2018
Answer to Question 1

Deposit insurance created a moral hazard problem in which savings institutions had an incentive to make riskier loans than they would have made in the absence of deposit insurance. In addition, because their deposits were federally insured, depositors of savings institutions had less incentive to monitor the risks incurred by the managers. As a result, the institutions extended large amounts of high-risk loans, many of which generated losses that resulted in failures by numerous institutions.

Answer to Question 2

A


sarasara

  • Member
  • Posts: 521
Reply 2 on: Jun 29, 2018
Wow, this really help

pratush dev

  • Member
  • Posts: 321
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Symptoms of kidney problems include a loss of appetite, back pain (which may be sudden and intense), chills, abdominal pain, fluid retention, nausea, the urge to urinate, vomiting, and fever.

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Did you know?

Green tea is able to stop the scent of garlic or onion from causing bad breath.

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

Formation of additional eyes in Drosophila caused by the abnormal expression of a master control gen Formation of additional eyes in Drosophila caused by the abnormal expression of a master control gen
Male Turkmen in the wealthier half of the population had higher fertility rates than those in the po Male Turkmen in the wealthier half of the population had higher fertility rates than those in the po
The explosion of the Maine in Havana harbor, killing 260 men, caused much speculation in the newspap The explosion of the Maine in Havana harbor, killing 260 men, caused much speculation in the newspap
Uticaria, a skin rash caused by type I hypersensitivity. Uticaria, a skin rash caused by type I hypersensitivity.
Damage caused by the 1964 earthquake in Alaska Damage caused by the 1964 earthquake in Alaska
Jane was due to make loan payments of S1872 nine months ago, S3074 five month ago, and S498 in ... Jane was due to make loan payments of S1872 nine months ago, S3074 five month ago, and S498 in ...
Video: Replication of DNA and Chromosomes/ How do cells replicate their DNA? (Animation) no Audio

For a complete list of videos, visit our video library