The statements regarding savings and loans (S&Ls) are all true EXCEPT S&Ls are not covered by federal deposit insurance. S&Ls are deposit-taking financial institutions. During the 1970s, inflation made savers less willing to deposit their money in S&Ls. Because of the troubles that S&Ls experienced in the 1970s, Congress loosened regulations on S&Ls. During the real estate boom in the 1970s and 1980s, S&Ls took on more risky loans.

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