With Regard to Regulation Q, Which of the Following Is

question 93

Multiple Choice

With regard to Regulation Q, which of the following is false?

• A)it involved interest rate ceilings for banks.
• B)it set uniform and universal reserve requirements for depositories.
• C)it was phased out in the early 1980s.
• D)it generated financial innovation to get around it.

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Definitions:

Inelastic

describes a situation where the demand or supply for a good is not significantly affected by changes in price.

Relatively Elastic

Describes a situation where demand for a product is sensitive to changes in its price, meaning consumers will significantly reduce or increase their demand based on price changes.

Sensitive

Responsive or easily affected by external conditions or stimuli.

Economic Theory

A concept or principles developed to explain how economies work and how economic agents interact.