Since Regulation Q has been abolished,there have been doubts raised about the size of the effect of the ________ channel.
A)balance sheet
B)bank lending
C)cash flow
D)unanticipated price level

Question

Quizplus · Accepted Answer

Regulation Q was a regulation that placed a cap on the interest rates that banks could offer on savings accounts. The abolition of this regulation has made it easier for banks to lend out their reserves, leading to an increase in bank lending. Therefore, the doubt raised would most likely be about the size of the effect of the bank lending channel.

Since Regulation Q Has Been Abolished,there Have Been Doubts Raised