The savings and loan industry would probably have a high sensitivity to a factor such as
A) national unemployment rates
B) real interest rates
C) exchange rates
D) utilization levels of fixed assets

Question

Quizplus · Accepted Answer

The savings and loan industry is heavily dependent on interest rates since they acquire funds from depositors and lend to borrowers at a higher interest rate, earning a spread or profit. The real interest rates, factoring in inflation, are particularly important for the industry's profitability and asset-liability management. National unemployment rates, exchange rates, and utilization levels of fixed assets may affect the industry indirectly, but not to the same extent as real interest rates.

The Savings and Loan Industry Would Probably Have a High