Which of the following was not a major reason for the savings institution crisis in the late 1980s?
A)a large proportion of loan losses on real estate loans
B)a large proportion of loan losses on loans by savings institutions to less-developed countries
C)fraud
D)illiquidity
E)increased interest expenses

Question

Quizplus · Accepted Answer

Savings institutions did not have a significant portion of their loan portfolio invested in less-developed countries; therefore, loan losses on such loans were not a major reason for the savings institution crisis in the late 1980s. The other choices (A, C, D, and E) were major reasons for the crisis, with a large proportion of loan losses on real estate loans being the primary cause.

Which of the Following Was Not a Major Reason for the Savings