Prior to the Passage of the Depository Institutions Deregulation and Monetary

question 17

Essay

Prior to the passage of the Depository Institutions Deregulation and Monetary Control Act many banks used to offer toasters or blenders to prospective customers to encourage them to open checking accounts. Can you think of a reason why this practice was so prevalent prior to the passage of this law but has completely faded away since?

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Definitions:

Compounded Quarterly

Interest calculation method where interest is added to the principal four times a year, resulting in interest earned on previously earned interest.

Capital Gain Yield

The rise in the price of an investment, represented as a percentage of the initial investment cost.

Appraised Value

The estimated value of a property, as determined by a qualified professional appraiser.

Property Taxes

Taxes levied by local governments based on the value of property owned, such as land and buildings.