Regulation Q (the restriction on interest paid on deposits) and rising nominal interest rates during the Great Inflation were responsible for an increase the size of the mutual fund industry.

Question

Quizplus · Accepted Answer

Regulation Q limited the interest rates banks could offer on deposits, and during periods of high inflation and rising nominal interest rates, savers sought higher returns, leading to growth in the mutual fund industry as investors moved funds into these higher-yielding investments.

Regulation Q (The Restriction on Interest Paid on Deposits) and Rising