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Chapter 14: Problem 22

One of the main results of the Depository Institutions Deregulation and Monetary Control Act of 1980 may be to (LO7) a) lessen the number of financial institutions in the United States b) increase the number of financial institutions in the United States c) discourage the formation of big, nationwide, allpurpose financial institutions d) make it easier for the member banks to borrow money from the Federal Reserve District Banks

Short Answer

Expert verified
The main result of the Depository Institutions Deregulation and Monetary Control Act of 1980 is to make it easier for the member banks to borrow money from the Federal Reserve District Banks, promoting monetary stability and competition among financial institutions.

Step by step solution

01

Understand the Act

Research the Depository Institutions Deregulation and Monetary Control Act of 1980 to comprehend its main objectives and effects on financial institutions in the United States. This vital information will help in selecting the correct answer from the given options.
02

Analyze the Options

Carefully analyze each of the four available options by comparing them with the impacts and objectives of the act. Determine which option best aligns with the main results of the act. a) Lessen the number of financial institutions in the United States b) Increase the number of financial institutions in the United States c) Discourage the formation of big, nationwide, all-purpose financial institutions d) Make it easier for the member banks to borrow money from the Federal Reserve District Banks
03

Determine the Correct Answer

After analyzing the information about the act and the given options, conclude that the correct answer is: d) Make it easier for the member banks to borrow money from the Federal Reserve District Banks The main purpose of the Depository Institutions Deregulation and Monetary Control Act of 1980 was to promote monetary stability and competition among financial institutions. This act made it easier for banks to access funds from the Federal Reserve District Banks, leading to improved competitiveness among banks and better services for customers.

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Most popular questions from this chapter

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