Statement I: Until 1980 only commercial banks were legally allowed to issue checking deposits.
Statement II: Commercial banks,unlike insurance companies and pension funds,cannot be considered financial intermediaries.

Question

Quizplus · Accepted Answer

Statement I is true, as prior to the Depository Institutions Deregulation and Monetary Control Act of 1980, only commercial banks were allowed to issue checking deposits. 
Statement II is false, as commercial banks can be considered financial intermediaries, as they accept deposits from savers and lend those funds to borrowers, acting as a middleman between the two parties.

Statement I: Until 1980 Only Commercial Banks Were Legally Allowed