The process in which people take their funds out of the banking system seeking higher-yielding securities is called

Question

Quizplus · Accepted Answer

Disintermediation refers to the process in which people withdraw their funds from traditional savings accounts and invest them in securities that offer higher returns. This reduces the amount of funds that banks have available to lend out, which can adversely affect their profits and ability to lend. Capital mobility refers to the movement of capital across international borders, while loophole mining and deposit jumping are not related to this concept.

The Process in Which People Take Their Funds Out of the Banking