Disintermediation resulted from
A)interest rate ceilings combine with inflation-driven increases in interest rates.
B)elimination of Regulation Q (the regulation imposing interest rate ceilings on bank deposits).
C)increases in federal income taxes.
D)reserve requirements.

Question

Quizplus · Accepted Answer

Disintermediation occurred when interest rate ceilings, like those imposed by Regulation Q, combined with inflation-driven increases in interest rates, leading depositors to withdraw funds from banks to seek higher returns elsewhere.

Disintermediation Resulted from