Savings & Loan Associations Put About 70 Percent Of Their Money Into Which Of The Following?

Savings & loan associations, or S&Ls, are specialized financial institutions which act as a bridge between savers and borrowers. Essentially, S&Ls provide a place for people to put their money in savings and earn interest, while also providing low-cost loans to those who need them. On average, about 70% of what S&Ls take in from savers is then loaned out to borrowers. But what type of loans do S&Ls typically offer?

The most common types of loans issued by S&Ls are mortgage loans, which are used to finance the purchase of a home. These loans usually include the purchase of the property itself, as well as any necessary repairs or renovations. S&Ls also offer student loans, both to those who are newly entering college and to those who may be looking to return to school. Additionally, many S&Ls offer auto loans and personal loans, which are used to finance cars and other large purchases, respectively.

Not all of the money pool in an S&L’s savings and loan accounts is loaned out, however. A portion of this money is held in reserve by the S&L in order to cover unexpected losses or unanticipated expenses. This reserve fund is also used to maintain the financial stability of the institution.

It is important to note that S&Ls are regulated by the Federal Deposit Insurance Corporation (FDIC). This means that the money in an S&L’s accounts is insured up to a certain limit. This provides peace of mind for savers and borrowers alike, as their money is protected in the event of an unexpected emergency.

In summary, savings and loan associations typically put about 70% of their money into mortgage loans, student loans, auto loans, and personal loans. The other 30% is held in reserve to cover losses and unexpected expenses. As an added layer of security, the money in an S&L’s accounts is insured by the FDIC, providing savers and borrowers with peace of mind.