During the 1970's, disintermediation occurred when
A) banks had nominal ceilings, others didn't.
B) nominal rates were low and consumers saved heavily.
C) savings and loans paid the highest real rates.
D) mortgage loan money was very available.

Question

Quizplus · Accepted Answer

Disintermediation occurred when banks had nominal ceilings on the interest rates they could offer, while other financial institutions did not. This made banks less competitive for deposits, as savers sought higher returns elsewhere.

During the 1970's, Disintermediation Occurred When