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.
Question 2
_____ can temporarily create dislocations as displaced workers try to find jobs elsewhere and, at the same time, make existing products more affordable.
a. Technological change
b. Changes in the rate of interest
c. Population changes
d. Changes in the price level
e. An increase in public expenditure
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