The Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA)prohibited savings institutions from
A)merging.
B)offering mortgage loans.
C)investing in junk bonds.
D)making loans to foreign governments.

Question

Quizplus · Accepted Answer

FIRREA was enacted in response to the savings and loan crisis of the 1980s. One of its provisions was to prohibit savings institutions from investing in high-risk assets, such as junk bonds, to prevent the kind of risky investment practices that contributed to the crisis.

The Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA)prohibited Savings