Statement I: In the 1980s,many savings and loan associations made very risky real estate loans that were not repaid.
Statement II: Risky investments in junk bonds played a role in the decline and fall of the savings and loan industry.

Question

Quizplus · Accepted Answer

Both statements are true. In the 1980s, many savings and loan associations made risky real estate loans that ultimately led to their failure. At the same time, investments in junk bonds, which were highly speculative and had poor credit ratings, also played a role in the decline of the savings and loan industry. The failure of many savings and loan associations had a significant impact on the US economy at the time.

Statement I: in the 1980s,many Savings and Loan Associations Made