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.

Interest-Rate Ceilings

Regulatory limits on the maximum interest rates that can be charged on loans, intended to protect consumers from excessive borrowing costs.

Ceiling Rates

The maximum interest rate that can be charged on a particular loan model or savings account, often regulated by law or government policy.

Deposits

Money placed into a bank account or financial institution for safekeeping, which can earn interest over time.