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:

Small Wire

Refers to electrical conductors of relatively small diameter, often used for low current applications or intricate electronic or electrical connections.

Few Turns

A term referring to a coil or winding with a small number of loops, affecting its inductive and resistive properties.

AC into DC

The process of converting alternating current (AC) into direct current (DC), typically using rectifiers.

Commutator

Strips or bars of metal insulated from each other and arranged around one end of an armature. They provide connection between the armature windings and the brushes. The commutator is used to ensure proper direction of current flow through the armature windings.