When regulators decided to allow insolvent S&Ls to continue to operate rather than shutting them down, it followed a policy of:
A)resurrection.
B)forbearance.
C)floating.
D)prevention.

Question

Quizplus · Accepted Answer

The policy described is that of forbearance, which allowed insolvent savings and loans to keep operating in the hopes they could recover. This ultimately led to a large number of failures and taxpayer bailouts.

When Regulators Decided to Allow Insolvent S&Ls to Continue to Operate