Answer to Question #165154 in Economics of Enterprise for vineet

Question

in depositor virus saving & loan association (S & L) , Suppose that the s&l CAN INVEST

Answer 1

The Savings and Loan Association (S&L), or savings institution, is a financial institution that specializes in accepting savings deposits and issuing mortgages and other loans. The terms "S&L" or "frugality" are primarily used in the United States; similar institutions in the United Kingdom, Ireland, and some Commonwealth countries include building societies and trust savings banks. They are often mutually held together (often referred to as mutual savings banks), which means that depositors and borrowers are voting participants and have the ability to determine the financial and management objectives of the bank. organizations such as members or policyholders of a mutual insurance company. Although a savings and loan fund may be a public company or even public, in such cases it is no longer a mutual association, and depositors and borrowers no longer have membership and management control rights. ... By law, savings institutions can have no more than 20 percent of their lending in the form of commercial loans - their focus on mortgages and consumer loans makes them especially vulnerable to housing downturns, such as the deep recession that the United States experienced. 2007.