Which sequence of events best summarizes the major developments in the US banking system leading up to the financial crisis of 2007-2009?

• A. Creation of the Federal Reserve, deregulation, Great Depression, high inflation of the 1970s.
• B. Lack of regulation, creation of the Federal Reserve, Great Depression, Glass-Steagall Act, savings and loan crisis.
• C. High inflation of the 1970s, savings and loan crisis, creation of the Federal Reserve, Great Depression.
• D. Savings and loan crisis, Great Depression, creation of the Federal Reserve, Glass-Steagall Act.

Answer: (B)