The term disintermediation refers to
A) the policy of not closing insolvent institutions in hopes that they can eventually turn around their performance.
B) the withdrawal of deposits from depository institutions that are reinvested in other types of intermediaries.
C) the policy of regulating the minimum rate of return institutions can pay on deposits.
D) chartering restrictions that limit the ability of new banks to enter into a local market.
E) the policy of not allowing banks to grow by creating a de novo branch outside their traditional market area.
Correct Answer:
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