In 1960, federal regulations prohibited banks from paying interest on checking accounts. Today, banks are legally allowed
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In 1960, federal regulations prohibited banks from paying interest on checking accounts. Today, banks are legally allowed to pay interest on checking accounts, yet the value of checking accounts has shrunk from more than 50% of commercial bank liabilities in 1960 to less than 12%.
Because checking accounts now pay interest, shouldn’t they have become more popular with households rather than less popular?
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The fact that checking accounts pay interest now should indeed make them more attractive to households compared to when they did not pay interest in 1...View the full answer
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Related Book For 
Money Banking And The Financial System International Edition
ISBN: 978-1292000183
2nd Edition
Authors: R. Glenn Hubbard ,Anthony P Obrien
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