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The Policy of Regulatory Forbearance

Question 7

Multiple Choice
The policy of regulatory forbearance

The policy of regulatory forbearance


A) meant delaying the closing of "zombie S&Ls" as their losses mounted during the 1980s.
B) benefited "zombie S&Ls" at the expense of healthy S&Ls, as healthy institutions lost deposits to insolvent institutions.
C) contributed to declining profitability in the S&L industry and an increase in the number of "zombie S&Ls."
D) did all of the above.
E) did only A and B of the above.

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