In the 1970s,_____.
A)the market interest rate increased above the rate that banks could offer
B)banks and thrifts were able to borrow at low interest rates to support outstanding loans
C)the market interest rate decreased below the rate that banks could offer
D)banks and thrifts were forced to call in outstanding loans
E)banks and thrifts were bailed out by the FDIC

Question

Quizplus · Accepted Answer

During the 1970s, market interest rates increased significantly, surpassing the rates that banks and thrifts could offer on deposits, leading to disintermediation and financial challenges for these institutions.