Final answer:
Thrifts, also known as savings and loans associations, were restricted by federal law before the 1980s to pay limited interest on deposits and primarily provided housing-related loans. Among the given choices, the correct answer is that thrifts could not pay interest on checkable deposits.
Step-by-step explanation:
Prior to the 1980s, financial institutions called thrifts, also known as savings and loan associations or savings and loans, had certain regulatory limitations. According to federal law that was in place from the 1930s until the 1980s, thrifts faced restrictions on how much interest they could pay on deposits. They were required to keep most of their lending activities focused on housing-related loans, aimed at homebuyers and real-estate developers. Therefore, among the given options, the correct one is (c) thrifts could not pay interest on checkable deposits.
Thrifts were distinct from commercial banks in that they specialized in savings deposits and home mortgage loans. Unlike commercial banks, thrift accounts set up in the 1970s allowed individuals to have demand deposit accounts and could provide checking capabilities. This differentiates them from option (d), which talks about accepting only savings deposits without checking privileges, and contradicts the history of thrifts.