Disintermediation resulted from
A)interest rate ceilings combined 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 rising market interest rates due to inflation, led depositors to withdraw funds from banks to seek higher returns elsewhere.

Disintermediation Resulted from