1) The Depository Institutions Deregulation and Monetary Control Act of 1980
A) restricted thrift institutions to making loans for home mortgages.
B) restricted the use of ATS accounts.
C) imposed restrictive interest rate ceilings on large agricultural loans.
D) increased deposit insurance from $40,000 to $100,000.
2) How did the increase in the interest rates in the early 80s contribute to the S&L crisis?
Banking Crises Throughout the World
1) The evidence from banking crises in other countries indicates that
A) deposit insurance is to blame in each country.
B) a government safety net for depositors need not increase moral hazard.
C) regulatory forbearance never leads to problems.
D) deregulation combined with poor regulatory supervision raises moral hazard incentives.
2) A common element in all of the banking crisis episodes in different countries is
A) the existence of a government safety net.
B) deposit insurance.
C) increased regulation.
D) lack of competition.