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Unformatted text preview: deposit interest rates on both loan interest rates and the total quantity of credit, when all credit is intermediated, the supply of credit by depositors is a function of the deposit interest rate, and the demand for credit by borrowers is a function of the loan interest rate. Use back of page if necessary. 7.4 (18 HW points) Connect each legislation in the left column with one of its effects in the right column Glass-Steagall Act of 1933 Strengthened capital standards for federally insured banks & thrifts Riegle-Neal Act of 1994 Authorized Net Worth Certificates to keep insolvent thrifts in business. FIRREA Act of 1989 Eliminated deposit interest ceilings on savings accts. FDICIA Act of 1991 Permitted interstate branching DIDMCA Act of 1980 Separated Commercial and Investment Banking repealed 1999 Garn-St Germain Act of 1982 Bailed out FSLIC-insured depositors at taxpayer expense...
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- Fall '07