Which of the following were provisions of the Monetary Control Act of 1980? Check all that apply.

a. The act allowed commercial banks to have lower interest rate ceilings than savings and loan associations (S&Ls).

b. The act allowed the Federal Reserve to set uniform reserve requirements for all commercial banks.

c. The act allowed commercial banks to pay unrestricted interest rates on checking accounts.

d. The act gave all depository institutions access to federal loan reserves, check clearing services, and other services provided by the Federal Reserve

Question

Business

Liam

30 May, 22:12

Which of the following were provisions of the Monetary Control Act of 1980? Check all that apply.

a. The act allowed commercial banks to have lower interest rate ceilings than savings and loan associations (S&Ls).

b. The act allowed the Federal Reserve to set uniform reserve requirements for all commercial banks.

c. The act allowed commercial banks to pay unrestricted interest rates on checking accounts.

d. The act gave all depository institutions access to federal loan reserves, check clearing services, and other services provided by the Federal Reserve

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Answers (1)

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Cassandra Andrade · Answer 1

The correct answers are letters "B" and "C": The act allowed the Federal Reserve to set uniform reserve requirements for all commercial banks; and, the act allowed commercial banks to pay unrestricted interest rates on checking accounts.

Explanation:

The Monetary Control Act (MAC) passed in 1980 is considered to be the first set of rules established in the banking industry after the Great Depression (1929). It mainly forced all the banks to remain under the rules of the Federal Reserve. Besides, it provided banks the autonomy to choose the interest rate on accounts under their own discretion.