Zombie institutions are financial institutions that are (insolvent/solvent) (but are not/ but are) allowed to continue operating.

Because these zombie institutions were desperate for both deposits as well assets, they offered loans at (low/high) interest rates while also paying (low/high) rates of return to depositors, forcing healthy institutions to do the same to compete.

True or False: The Depository Trust Company was created in 1989 to liquidate, and sell off the assets of, insolvent thrifts.

False

True