Prior to 1980,the Fed set an interest rate ________,a maximum limit,on the interest rate that could be paid on time deposits.
A)floor
B)ceiling
C)wall
D)window

Question

Quizplus · Accepted Answer

Prior to 1980, the Fed set a maximum limit (or ceiling) on the interest rate that could be paid on time deposits. This policy was known as Regulation Q. The purpose of the regulation was to limit competition among banks and stabilize interest rates.

Prior to 1980,the Fed Set an Interest Rate ________,A Maximum