Thrift institutions encountered serious difficulties in the 1970s because
A)money market mutual funds became serious competitors for their deposits
B)the U.S.Treasury deposited larger sums of money than the thrift institutions could effectively manage
C)interest rates they had to pay on deposits began to fall
D)each of the largest banks increased the pressure on the thrifts by building a nationwide network of branch banks
E)the FDIC increased the reserve requirement for thrifts

Question

Quizplus · Accepted Answer

Thrift institutions faced difficulties in the 1970s primarily because money market mutual funds became serious competitors for their deposits, offering higher interest rates and more attractive investment options.

Thrift Institutions Encountered Serious Difficulties in the 1970s Because