How did high interest rates affect savings and loans (S&Ls) in the 1980s? S&Ls lost money. They had to pay high interest on deposits, but took in less money from low interest loans. S&Ls lost money. Their earnings were not enough to pay off the loans they had taken out from the Federal Reserve. S&Ls made money. High interest rates attracted more depositors, and S&Ls used their deposits to make more loans. S&Ls made money. They earned high interest on loans they made throughout the 1980s.
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