1) Thrift institutions importance as a source of funds for borrowers
A) has shrunk from around 40 percent of total credit advanced in the late 1970s to below 30 percent by 2005.
B) has shrunk from over 20 percent of total credit advanced in the late 1970s to below 6 percent by 2005.
C) has expanded dramatically, from around 15 percent of total credit advanced in the late 1970s to above 25 percent by 2005.
D) has expanded dramatically, from around 15 percent of total credit advanced in the late 1970s to above 30 percent by 2005.
2) Since 1980
A) bank profitability has declined.
B) banks have offset the decline in profits from traditional activities with increased income from off-balance-sheet activities.
C) banks have offset the decline in profits from off-balance-sheet activities with increased income from traditional activities.
D) bank profits have grown rapidly due to deregulation.
3) Financial innovation has caused
A) banks to suffer declines in their cost advantages in acquiring funds, although it has not caused a decline in income advantages.
B) banks to suffer a simultaneous decline of cost and income advantages.
C) banks to suffer declines in their income advantages in acquiring funds, although it has not caused a decline in cost advantages.
D) banks to achieve competitive advantages in both costs and income.