The deregulation of U.S.banking in the 1980s led to:
A)increased profits at all banks.
B)no change in banks' conduct.
C)more bank failures than in the 1930s.
D)the insolvency and collapse of many banks as they began to hold riskier assets.
E)the end of FDIC insurance for banks that held risky assets.

Question

Quizplus · Accepted Answer

The deregulation of U.S. banking in the 1980s resulted in the insolvency and collapse of many banks as they began to hold riskier assets. The removal of regulations allowed banks to invest in riskier assets, leading to higher profits but also higher risks. This led to many banks failing and collapsing as they were unable to manage these risks.

The Deregulation of U