Multiple Choice QuestionPrior to the 1970s, ______ focused almost exclusively on real estate lending and accepted only savings accounts.Multiple choice question.savings and loan associationsmutual savings bankscredit unionscommercial banks
Question
Multiple Choice QuestionPrior to the 1970s, ______ focused almost exclusively on real estate lending and accepted only savings accounts.Multiple choice question.savings and loan associationsmutual savings bankscredit unionscommercial banks
Solution
The answer is: savings and loan associations.
Step by step explanation:
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The question is asking about a type of financial institution that, prior to the 1970s, focused almost exclusively on real estate lending and accepted only savings accounts.
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Savings and loan associations, also known as S&Ls, are specialized banks created to promote affordable homeownership. They get their name by funding mortgages with savings that are insured by the Federal Deposit Insurance Corporation. Historically, they have offered higher rates on savings accounts to attract more deposits, which increases their ability to offer mortgages.
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Prior to the 1970s, S&Ls were largely limited to this role. They were not like commercial banks, which offer a wide range of services and accept different types of deposits. Mutual savings banks and credit unions also offer a wider range of services.
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Therefore, the answer is savings and loan associations.
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