Question

1) Activity in money markets increased significantly in the late 1970s and early 1980s because of A) rising short-term interest rates. B) regulations that limited what banks could pay for deposits. C) both A and B of the above. D) neither A nor B of the above.

Answer 1

Answer: C

The correct answer to this question is C)
both A and B of the above.
In the late 1970s and early 1980s, activity in money markets increased significantly due to two main factors: rising short-term interest rates and regulations that limited what banks could pay for deposits.