Interest-Rate Ceilings on Deposits

question 109

Multiple Choice

Interest-rate ceilings on deposits:

• A)meant banks were guaranteed "cheap money" from depositors.
• B)were imposed because without them,as was the case in the 1970s,banks couldn't be profitable.
• C)led to banks losing deposits whenever market rates went above the ceiling rates.
• D)are only effective when market rates are below the ceiling rates.
• E)were developed by money market mutual funds as a marketing device.

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Definitions:

Loves

An intense feeling of deep affection towards a person, place, thing, or concept.

Existential Generalization

A principle in logic where from a specific case, one infers the existence of cases or a generic form.

Quantifier Negation

The process of negating the quantifiers in logical expressions, effectively altering the scope and meaning of the statement.

Universal Generalization

A principle in logic and mathematics that allows for the formulation of a general statement from the observation of particular instances.