Monetary Control Act

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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.

BREAKING DOWN '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.

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RELATED FAQS
  1. How does the Private Sector Adjustment Factor (PSAF) affect competition in the private-sector?

    There's no sure way of evaluating the real impact of the private sector adjustment factor (PSAF) on the competitiveness of ... Read Full Answer >>
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    Contrary to conventional wisdom, the Federal Reserve is extensively audited. Politicians on the left and right of a populist ... Read Full Answer >>
  3. Who decides when to print money in the US?

    The U.S. Treasury decides to print money in the United States as it owns and operates printing presses. However, the Federal ... Read Full Answer >>
  4. When has the United States run its largest trade deficits?

    In macroeconomics, balance of trade is one of the leading economic metrics that determines the trading relationship of a ... Read Full Answer >>
  5. How does the bond market react to changes in the Federal Funds Rate?

    The bond market is highly sensitive to changes in the federal funds rate. When the Federal Reserve increases the federal ... Read Full Answer >>
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