Until the 1960, Regulation Q had virtually no impact on the ability of banks to compete with other financial institutions to obtain funds because:
A) Market interest rates stayed below the ceiling rate.
B) Market interest rates stayed above the ceiling rate.
C) Market interest rates and the ceiling rate stayed the same.
D) The ceiling rate stayed below the market interest rates.
E) None of the above.

Question

Quizplus · Accepted Answer

Regulation Q, which set a ceiling on the interest rates that banks could offer, had little impact until the 1960s because market interest rates remained below this ceiling rate, allowing banks to compete effectively without being constrained by the regulation.

Until the 1960, Regulation Q Had Virtually No Impact on the Ability