Asked by robin singh on May 21, 2024
Verified
The Depository Institutions Deregulation Monetary Control Act of 1980
A) enhanced the distinction between banks which are members of the Federal Reserve System and those which are not.
B) requires thrift institutions to be subject to the same limitations upon the creation of checkable deposits as are commercial banks.
C) prohibited thrift institutions from offering checkable deposits.
D) reduced the degree of competition between commercial banks and the thrift institutions.
Depository Institutions Deregulation
This involves removing or loosening government restrictions on banks and other financial institutions to allow for greater efficiency and competition.
Monetary Control Act
A United States federal law enacted in 1980 aimed at improving the Federal Reserve's control over the monetary supply and interest rates.
Thrift Institutions
Financial organizations focused on savings and mortgage lending, including savings and loan associations, credit unions, and savings banks.
- Understand the regulatory changes introduced by the Depository Institutions Deregulation and Monetary Control Act of 1980.
Verified Answer
NV
Nadine VaughnMay 25, 2024
Final Answer :
B
Explanation :
The Depository Institutions Deregulation Monetary Control Act of 1980 required thrift institutions (such as savings and loans associations) to be subject to the same limitations upon the creation of checkable deposits as are commercial banks. This effectively removed the previous advantage that thrift institutions had in creating checkable deposits, which reduced the degree of competition between commercial banks and thrift institutions.
Learning Objectives
- Understand the regulatory changes introduced by the Depository Institutions Deregulation and Monetary Control Act of 1980.