The process in which people seeking higher yielding securities take their funds out of the banking system thus restricting the amount of funds banks can lend is called

Question

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Disintermediation is the process by which people withdraw their funds from a financial intermediary, such as a bank or a savings and loan association, in order to invest in higher-yielding securities. This reduces the amount of funds the financial intermediary has available to lend or invest, thus restricting its ability to generate income. This can lead to higher interest rates and a tightening of credit conditions in the broader economy.

The Process in Which People Seeking Higher Yielding Securities Take