Results 1 - 2 of 2 for PRIME [Author: Charlotte E. Ruebling]
The Adminstration of Regulation Q - Review
At a time when market interest rates have soared to levels never before reached in this country, rates on deposits at banks and other financial institutions have been held much lower. The rate commercial banks charge on prime business loans has been 8 1/2 per cent since early last June. Mortgage and many other market interest rates are currently about as high. On the other hand, payment of interest is prohibited on demand deposits, and the maximum rates permitted on time and savings deposits vary between 4.50 and 7.50 per cent. The highest rate applies only to deposits in denominations of $100,000 or more maturing in a year or longer.
research.stlouisfed.org/publications/review/1970/02/01/the-adminstration-of-regulation-q
Federal Open Market Committee Decisions in 1969—Year of Monetary Restraint - Review
Monetary actions in 1969 exerted a decidedly more restrictive effect on the future course of economic activity than in the previous two years. All of the major economic variables generally used as indicators of monetary ease or restraint evidenced the restrictive influence. In 1969 the growth rates of the money stock, defined as currency and demand deposits held by the nonbank public, and money more broadly defined to include time deposits, decreased markedly from the previous two years. Bank credit likewise showed a slower rate of increase. Interest rates rose rapidly during most of the year, reaching levels well above their averages in previous years.
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