Assignment 9

1. Thrift institutions organized as ______________ do not have stock outstanding.

E. mutuals

2. A savings institution must hold a specified minimum portion of mortgage-related assets to

pass the _______________ test.

D. QTL

3. The savings association problems of the 1980s were accentuated by an FSLIC policy of
_________________; in essence, the FSLIC chose not to close insolvent institutions.

D. regulator forbearance

4. In the early 1980s, Congress passed two laws that widened the range of permitted activities
for savings associations. These were:

C. Garn-St. Germain and DIDMCA

5. Finance companies enjoy several advantages over banks. Which of the following is not
one of those advantages?

D. Finance companies have lower funds costs than banks.

6. Credit unions are organized as:

C. mutuals

7. Credit Unions are chartered at the federal level by:

C. NCUA

8. The primary loan focus of a Credit Unions is in loans to:

C. individuals
9. A finance company thats willing to lend to high-risk borrowers could be called a:

E. sub-prime lender.

10. If a lending institution is a subsidiary of a larger organization, extending credit to customers

of that larger organization, we refer to it as a:

B. captive finance company