Bankers supported the federal reserve board's regulation Q because. it allowed them to charge lower interest...
Bankers supported the federal reserve board's regulation Q because.
it allowed them to charge lower interest rates on loans (wrong answer)
it protected them from money market volatilities
increase the demand for loanable funds in the market
it allowed them to borrow at a low rate of interest and lend out at a high rate of interest
Homework Answers
Answer: (B)
Regulation Q was imposed by the Federal Reserve to restrict the interest rate. Many banks were offering higher interest rate to attract new depositors, thus speculative activities were likely to rise. Thus, volatilities were imminent. banks supported it, since it saved them from potential volatility.
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Bankers supported the federal reserve board's regulation Q
because.
it allowed them to charge lower interest...
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