The increased number of conversion from mutual S&Ls to stock S&Ls in recent years can be attributed to...
A)an increase in competition as the stock S&Ls are more efficient than mutual S&Ls
B)managers of mutual S&Ls found it more costly to consume perks excessively
C)the deposit insurance eliminated the agency cost of debt advantage of the mutuals
D)all of the above
E)both a and c

Question

Quizplus · Accepted Answer

The deposit insurance eliminated the agency cost of debt advantage of the mutuals, and an increase in competition as the stock S&Ls are more efficient than mutual S&Ls.

The Increased Number of Conversion from Mutual S&Ls to Stock