Whereas prior to 1980 only banks create money,today because of _____ all depository institutions with checkable deposits are involved in the process of money creation.

Question

Quizplus · Accepted Answer

The Depository Institutions Deregulation and Monetary Control Act of 1980 allowed all depository institutions with checkable deposits to engage in the process of money creation, not just banks. This act gave these institutions access to the Federal Reserve's payment and settlement systems and removed many of the regulations that had previously limited their ability to compete with traditional banks. The other options listed (the Federal Reserve Act, the FDIC, and the Fiscal Responsibility Act of 1980) do not directly relate to the expansion of money creation to depository institutions beyond just banks.

Whereas Prior to 1980 Only Banks Create Money,today Because of _____