All of the following have contributed to the problems of U.S.depository institutions during the last 20 years except one.Which is the exception?
A)Interest rates rose during the 1970s.
B)Interest rate ceilings limited the ability of depository institutions to compete with other financial institutions.
C)Brokerage houses began offering money market mutual funds.
D)The loans made by thrift institutions tended to be short-term loans.
E)Many savers withdrew deposits from thrift institutions.

Question

Quizplus · Accepted Answer

Thrift institutions typically made long-term loans, such as mortgages, rather than short-term loans. This mismatch between the long-term nature of their assets and the short-term nature of their liabilities contributed to their problems, not the other way around.

All of the Following Have Contributed to the Problems of U.S.depository