Depository Institutions Deregulation and Monetary Control Act
Okay kiddo, imagine your piggy bank is like a bank. Just like you put your coins and bills in it, other people put their money in the bank.
A long time ago, the government said that banks had to follow certain rules. For example, they had to keep a certain amount of money in their piggy bank all the time so that if people wanted to take their money out, the bank would have enough to give them.
But then, the government decided to change the rules. They said banks could keep less money in their piggy bank and use the extra money to make loans and investments. This was called depository institutions deregulation.
But then, some people got worried that banks wouldn't have enough money to give back to people if everyone wanted to take their money out all at once. So the government made a new law called the Monetary Control Act. This law helped the government keep tabs on how much money the banks were using and make sure they had enough money saved to give back to people if they needed it.
So basically, depository institutions deregulation allowed banks to use more of their money to make loans and investments, but the Monetary Control Act made sure the banks had enough money saved up in case they needed to give the money back to people who put it in their piggy banks.
A long time ago, the government said that banks had to follow certain rules. For example, they had to keep a certain amount of money in their piggy bank all the time so that if people wanted to take their money out, the bank would have enough to give them.
But then, the government decided to change the rules. They said banks could keep less money in their piggy bank and use the extra money to make loans and investments. This was called depository institutions deregulation.
But then, some people got worried that banks wouldn't have enough money to give back to people if everyone wanted to take their money out all at once. So the government made a new law called the Monetary Control Act. This law helped the government keep tabs on how much money the banks were using and make sure they had enough money saved to give back to people if they needed it.
So basically, depository institutions deregulation allowed banks to use more of their money to make loans and investments, but the Monetary Control Act made sure the banks had enough money saved up in case they needed to give the money back to people who put it in their piggy banks.