Which of the following statements concerning the problems of commercial banks during the 1980s is NOT true?

Question

Quizplus · Accepted Answer

Interest rate risk was a significant problem for thrift institutions (such as savings and loan associations) in the 1980s, primarily because they had long-term, fixed-rate assets (like mortgages) funded by short-term liabilities, making them more vulnerable to interest rate fluctuations than commercial banks. Commercial banks faced issues like rising funding costs and increased risk-taking, but their exposure to interest rate risk was generally not as severe as that of thrifts.

Which of the Following Statements Concerning the Problems of Commercial