Which of the Following Statements About the Depository Institutions Deregulation

question 9

Multiple Choice

Which of the following statements about the Depository Institutions Deregulation and Monetary Control Act of 1980 is NOT correct?

• A)It required all banks to maintain reserve deposits with the Fed.
• B)It gave member and nonmember banks equivalent access to discount loans.
• C)It halted the decline in Fed membership.
• D)It eliminated restrictions on interstate banking for member banks.

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Definitions:

Debt Flotation Costs

Fees and expenses incurred by an issuer of debt when offering new securities to investors.

Capital Structure

The mix of various forms of capital used by a company, including debt and equity, to finance its operations.

Equity

Represents the value that would be returned to a company's shareholders if all of the assets were liquidated and all of the company's debts were paid off.

Refunding Investment Outlay

The process of reallocating or investing capital in new assets or projects with the intention of generating returns or benefits that exceed the initial costs.