Statement I: The regulatory pendulum in the savings and loan industry has begun to swing toward more regulation since the savings and loan debacle.
Statement II: Most financial intermediaries are commercial banks.

A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.

Regulatory Pendulum

describes the cyclical process where regulatory policies swing between strict regulation and deregulation over time.

Financial Intermediaries

Firms that accept deposits from savers and use those deposits to make loans to borrowers.

Savings and Loan

Financial institutions primarily engaged in accepting savings deposits and making mortgage and other loans to the public.