The Term Disintermediation Refers to

question 49

Multiple Choice

The term disintermediation refers to

• A)the policy of not closing insolvent institutions in hopes that they can eventually turn around their performance.
• B)the withdrawal of deposits from depository institutions that are reinvested in other types of intermediaries.
• C)the policy of regulating the minimum rate of return institutions can pay on deposits.
• D)chartering restrictions that limit the ability of new banks to enter into a local market.
• E)the policy of not allowing banks to grow by creating a de novo branch outside their traditional market area.

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Definitions:

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