Asked by Samantha Beveridge on May 17, 2024
Verified
Each of the following hurt the savings and loan industry in the 1980s,except
A) rising interest rates.
B) rising real estate prices.
C) the recession of 1981-82.
D) the falling price of oil.
Real Estate Prices
The amount of money required to purchase property, including land and buildings, which can fluctuate based on demand, location, and economic conditions.
Saving And Loan
A financial institution that focuses on accepting savings deposits and making mortgage and other loans.
Interest Rates
The cost of borrowing money, typically expressed as a percentage of the amount loaned, which can affect economic activity by influencing spending and saving behaviors.
- Analyze the factors influencing the savings and loan industry.
Verified Answer
SL
sandra lopezMay 18, 2024
Final Answer :
B
Explanation :
Rising real estate prices generally benefit the savings and loan industry because they increase the value of the collateral backing many of their loans, potentially leading to more lending opportunities and better financial health for these institutions. The other options (A, C, D) all represent economic challenges that would negatively impact the savings and loan industry.
Learning Objectives
- Analyze the factors influencing the savings and loan industry.