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:

Government Setting

The environment and conditions created by governmental policies, laws, and regulations.

Price Of Pencils

The amount of money required to purchase a pencil, determined by factors such as production costs, demand, and supply.

Price Ceiling

A government-imposed limit on how high a price can be charged on a product or service, intended to protect consumers from conditions that could make necessary goods unaffordable.

Maximum Price

A ceiling price set by an authority, above which the sale of a good or service is not allowed.