Asked by kirston seldon on May 16, 2024
Verified
There was a very clear line of demarcation,which divided commercial banks and thrift institutions until the year
A) 1950.
B) 1960.
C) 1970.
D) 1980.
E) 1990.
Thrift Institutions
Financial institutions, such as savings banks and credit unions, that primarily accept savings deposits and make loans to consumers.
Commercial Banks
Financial institutions that accept deposits, offer various loans, and provide other financial services, like currency exchange and wealth management.
- Understand the Federal Reserve's function in overseeing the banking industry and its effects on economic performance.
Verified Answer
MM
Marni MaresMay 17, 2024
Final Answer :
D
Explanation :
The line of demarcation between commercial banks and thrift institutions was very clear until the 1980s. In 1980, the Depository Institutions Deregulation and Monetary Control Act was passed, which removed many of the restrictions on thrift institutions and allowed them to compete more directly with commercial banks. This led to a blurring of the lines between the two types of institutions.
Learning Objectives
- Understand the Federal Reserve's function in overseeing the banking industry and its effects on economic performance.
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