ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The Federal Reserve Act.
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The Equal Credit Opportunity Act.
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The Monetary Control Act.
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The Thrift Bailout Bill.
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Detailed explanation-1: -Which of the following laws increased competition among financial institutions and gave the Fed greater control over nonmember banks? The Monetary Control Act.
Detailed explanation-2: -Title II of the act is known as the Depository Institutions Deregulation Act of 1980. It phased out restrictions on interest rates that depository institutions could offer on their deposits. To ensure an orderly transition to this new environment, the phase-out lasted six years.
Detailed explanation-3: -To facilitate the implementation of monetary policy, to provide for the gradual elimination of all limitations on the rates of interest which are payable on deposits and accounts, and to authorize interest-bearing transaction accounts, and for other purposes. Deregulation and Monetary Control Act of 1980".
Detailed explanation-4: -National Bank National banks are required to be members of the Federal Reserve System and belong to the Federal Deposit Insurance Corporation.