Monetary Control Act

AAA

DEFINITION of 'Monetary Control Act'

Title 1 of a two-title act passed in 1980 that represented the first significant reform in the banking industry since the Great Depression. One of the major highlights of the Monetary Control Act was the deregulation of interest rates paid by depository institutions such as banks. It also opened the Fed discount window and extended reserve requirements to all domestic banks.

INVESTOPEDIA EXPLAINS 'Monetary Control Act'

The Monetary Control Act and contained several provisions relating to bank reserve and deposit requirements. It created the popular Negotiable Order of Withdrawal (NOW) accounts and also raised the amount of FDIC insurance protection from $40,000 to $100,000 per account.

Title 2 of this Act was the Depository Institutions Deregulation Act of 1980.

RELATED TERMS
  1. Thrift Institutions Advisory Council

    A council that advises the Federal Reserve board of governors ...
  2. Private Sector Adjustment Factor ...

    A method used by the Federal Reserve Board for calculating the ...
  3. Monetary Base

    The total amount of a currency that is either circulated in the ...
  4. Money

    An officially-issued legal tender generally consisting of currency ...
  5. Monetary Reserve

    A nation's assets held in a foreign currency and/or commodities ...
  6. Monetary Policy

    The actions of a central bank, currency board or other regulatory ...
RELATED FAQS
  1. No results found.
Related Articles
  1. Economics

    What Is Fiscal Policy?

    Learn how governments adjust taxes and spending to moderate the economy.
  2. Economics

    Monetarism: Printing Money To Curb Inflation

    Learn how Milton Friedman's monetarist views shaped economic policy after World War II.
  3. Active Trading

    Leading Economic Indicators Predict Market Trends

    Leading indicators help investors to predict and react to where the market is headed.
  4. Bonds & Fixed Income

    The Fed's New Tools For Manipulating The Economy

    The economy can be volatile when left to its own devices. Find out how the Fed smoothes things out.
  5. Fundamental Analysis

    What Is the Quantity Theory of Money?

    Take a look at the tenets, assumptions and challenges of monetarism's principal theory.
  6. Investing

    What Has Been Groupon’s Growth Strategy?

    Groupon established a strategy with efforts to become a broader force in the e-commerce world and to expand more strongly into international markets.
  7. Investing

    Are You Ready To Invest In The Tech Sector?

    Tech stocks, particularly those of mature tech companies, are well positioned and offer meaningful upside potential in the near-term.
  8. Investing

    Strategies To Position Your Bond Portfolio

    Fixed income investors may not be able to see them all right now, but important trends are stirring on the investment horizon.
  9. Economics

    The Impact Of Ending The US Embargo On Cuba

    Many argue that ending the US embargo on Cuba will not only make US consumers happy, but also help the US economy and bring more freedoms to Cuba.
  10. Economics

    How Unconventional Monetary Policy Works

    Unconventional monetary policy, such as quantitative easing, can be used to jump-start economic growth and spur demand.

You May Also Like

Hot Definitions
  1. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  2. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  3. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  4. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
  5. Investment Grade

    A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such ...
  6. Fringe Benefits

    A collection of various benefits provided by an employer, which are exempt from taxation as long as certain conditions are ...
Trading Center