Asked by Ricardo Ortiz on Jun 13, 2024
Verified
Statement I: Under the Depository Institutions Deregulation and Monetary Control Act of 1980,all banks and thrift institutions are subject to the reserve requirements of the Federal Reserve.
Statement II: Under the Depository Institutions Deregulation and Monetary Control Act of 1980 all banks and thrift institutions are legally authorized to issue checking accounts.
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.
Depository Institutions Deregulation
The reduction or elimination of government regulations on banks and similar institutions to foster a more efficient and competitive financial environment.
Checking Accounts
Bank accounts that allow depositors to write checks against deposited funds for payments to third parties.
Reserve Requirements
Regulations set by central banks that determine the minimum amount of reserves a bank must hold against deposits, affecting the money supply.
- Absorb the historical developments in regulatory practices in the banking sector and their influences.
- Identify the significance of key acts like the Glass-Steagall Act and the Depository Institutions Deregulation and Monetary Control Act of 1980.
Verified Answer
Learning Objectives
- Absorb the historical developments in regulatory practices in the banking sector and their influences.
- Identify the significance of key acts like the Glass-Steagall Act and the Depository Institutions Deregulation and Monetary Control Act of 1980.
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