The purpose of Regulation Q, which prevented banks from paying interest on checking accounts, was to prevent unhealthy competition between banks.

Name: The purpose of Regulation Q, which prevented banks from paying interest on checking accounts, was to prevent unhealthy competition between banks.
Brand: Quizplus
Rating: 4.8 (56 reviews)

Question

Quizplus · Accepted Answer

Regulation Q, implemented in 1933 as part of the Banking Act, prohibited banks from paying interest on checking accounts as a means of preventing unhealthy competition among banks. It was repealed in 2011.

The Purpose of Regulation Q, Which Prevented Banks from Paying