The thrifts were hurt by growing inflationary pressures in the 1960s. Their problems were compounded by which of these factors in that same decade?

Question

Quizplus · Accepted Answer

Regulation Q, which was part of the Banking Act of 1933, set limits on the interest rates that banks could pay on deposits. In the 1960s, thrifts (savings and loan associations) were indeed fully impacted by Regulation Q, as the rising inflation meant that the interest rates they could offer on savings accounts were not competitive with market rates. This made it difficult for them to attract deposits, compounding their problems during a time of growing inflationary pressures.

The Thrifts Were Hurt by Growing Inflationary Pressures in the 1960s