Regulation Q


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Regulation Q

Federal Reserve Board regulation imposing caps on the rates that banks may pay on savings and time deposits. Currently time deposits with a denomination of $100,000 or more are exempt from Reg Q.

Regulation Q

A former regulation of the U.S. federal government forbidding banks from paying interest on certain demand deposits, and imposing a low interest rate on savings account deposits. The result of the regulation was the proliferation of money market funds (which did pay interest). Regulation Q was almost entirely revoked by the Depository Institutions Deregulation and Monetary Control Act of 1980.

Regulation Q

A federal law having to do with interest on bank deposits. Today, it provides that banks cannot pay interest on demand deposit accounts—checking accounts.

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