Which of the Following Was a Result of the Depository

question 268

Multiple Choice

Which of the following was a result of the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA) ?

• A)All checkable deposits,whether at commercial banks,savings banks,savings and loan associations,or credit unions will have the same reserve requirements.
• B)The Fed has the power to change the reserve requirement on checkable deposits at commercial banks but not credit unions.
• C)The Fed has the power to set the reserve requirement on checkable deposits at credit unions,but once set,the reserve requirement cannot be changed for two years.
• D)Commercial and savings banks are regulated by the Fed,but credit unions and state banks are not subject to regulations,but must pay dues to the FeD.
• E)Credit unions and state banks must abide by Fed reserve requirements,but are denied access to borrowing at the discount window.

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Definitions:

Monopolistically Competitive

A market structure characterized by many sellers offering differentiated products, allowing some degree of pricing power and market segmentation.

AVC

Average Variable Cost (AVC) is the total variable costs of production divided by the quantity of output produced, representing the variable cost per unit.

ATC

Stands for Average Total Cost, which is the sum of all production costs divided by the quantity of output produced.

MR = MC

This key term signifies the point where Marginal Revenue (MR) equals Marginal Cost (MC), typically marking the profit-maximizing level of production for a firm.