Which law involves the deregulation of interest rates on loans?

The correct response relates to the Depository Institutions Deregulation and Monetary Control Act. This legislation, enacted in the late 1970s, was primarily designed to phase out restrictions on interest rates that depository institutions could offer on loans and deposits. It aimed to enhance competition among financial institutions by allowing them more freedom to set interest rates, thereby promoting a more efficient marketplace.

By reducing regulatory restrictions, this act contributed to an environment where financial institutions could tailor their offers and rates based on market conditions rather than being bound by government-imposed limits. This deregulation played a key role in shaping the modern lending landscape, influencing how mortgage loan interest rates are determined today.

In contrast, the other options address different aspects of financial regulation: the Equal Credit Opportunity Act aims to eliminate discrimination in lending; the Truth in Lending Act mandates disclosure of loan costs to consumers; while the Bank Holding Company Act governs the activities of bank holding companies, ensuring their financial and operational health.