Question

Regulation Q:

A. prohibited interstate banking.
B. placed ceilings on allowable interest rates on time and savings deposits.
C. required all banks to hold reserves against demand deposits.
D. broadened the basis on which the Fed could make discount loans.

Answer 1

The correct answer is C

Step-by-step explanation:

Regulation Q stands for the Federal Reserve Board rule, which sets the requirements of the minimum capital and the standards for capital adequacy for the institutions that are board regulated.

This rule is executed in order to ensure the banks to maintain the sufficient or adequate amount of capital which will allow them to continue the leading despite losses or any downturn in the economy.