For much of the post World War II time period, $.$ This resulted in applied only to having the ability to offer more attractive rates of return to aepositors.

Recall the following relationship between interest rates $($IR$)$ and inflation: Nominal IR $=$ Real IR $+$ Rate of Inflation

From this relationship you can tell that growing inflation puts pressure on nominal $($or market$)$ interest rates, all else equal. With the growing inflation of the $1960\text{'}$s$,$ thrifts, with their portfolio of $30-$year mortgages that paid fixed interest rates, faced competition for deposits.

True or False: By $1966,$ Regulation Q applied to neither thrifts, nor commercial banks.

True

False