Banking Practice Exam 2025 - Free Banking Practice Questions and Study Guide

Question: 1 / 400

What was a goal of the Depository Institutions Deregulation and Monetary Control Act of 1980?

To reduce the range of banking services offered.

To allow banks to pay market rates on deposits.

The goal of the Depository Institutions Deregulation and Monetary Control Act of 1980 was to allow banks to pay market rates on deposits. This legislation aimed to enhance the competitiveness of depository institutions by enabling them to offer interest rates that were more in line with market conditions, thereby encouraging more savings and deposits from consumers. By allowing banks to respond to market dynamics, the act helped to break down the barrier of the previously imposed interest rate ceilings, which had limited the ability of banks and thrift institutions to attract deposits.

The act also played a role in increasing the availability of various financial services and enhancing the overall efficiency of the banking system. It helped modernize the banking industry by ensuring that banks could compete more effectively for deposits in a changing economic landscape.

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To allow banks to make long-term mortgage loans.

To offer Money Market Deposit Accounts.

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