What was a primary consequence of deregulation in the 1980s and 1990s regarding credit cards?
Understand the Problem
The question is asking about the effects of deregulation on the credit card industry during the 1980s and 1990s. We need to identify which of the provided options accurately reflects a major consequence of this deregulation.
Answer
Deregulation led to the deregulation of credit card interest rates and encouraged card issuers to offer cards to riskier customers.
A key outcome of deregulation in the 1980s and 1990s regarding credit cards was the effective deregulation of credit card interest rates. This encouraged card issuers to offer cards to riskier customers who previously did not qualify.
Answer for screen readers
A key outcome of deregulation in the 1980s and 1990s regarding credit cards was the effective deregulation of credit card interest rates. This encouraged card issuers to offer cards to riskier customers who previously did not qualify.
More Information
The DIDMCA (Depository Institutions Deregulation and Monetary Control Act) of 1980 was a key piece of legislation that contributed to deregulation in the banking sector.
Tips
It's important to focus on the specific time frame (1980s and 1990s) mentioned in the question, as deregulation has had a long history with multiple phases.
Sources
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