One Purpose of Interest-Rate Ceilings Was To

question 110

Multiple Choice

One purpose of interest-rate ceilings was to:

• A)establish a ceiling on bank profits.
• B)establish a floor on bank profits.
• C)encourage competition in other areas.
• D)eliminate the need for the FDIC.
• E)reduce the chance of bank failures.

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Definitions:

Negotiable Instrument

A document in writing that ensures a certain sum of money will be paid, whether immediately upon request or at a predetermined date, with the document specifying the individual responsible for the payment.

Particular Fund

A specific pool of money that is designated for a particular purpose or investment strategy.

Unconditional Promise

A commitment that is absolute and not subject to any conditions or contingencies.

Payable to Bearer

A designation on a financial instrument (like a check) meaning the person in possession of it can redeem it for its value.