Which of the Following Was a Consequence of Passage of the Financial

question 22

Multiple Choice

Which of the following was a consequence of passage of the Financial Modernization Act (Gramm-Leach-Bliley) ?

• A) Formation of insurers was made easier because capital requirements were reduced.
• B) It became easier for insurers to conduct business as they were no longer required to be licensed in each state where they operate, but only in the state where they are domiciled.
• C) Insurers were required to prepare financial statements using generally accepted accounting principles (GAAP) instead of using statutory accounting.
• D) Depression-era barriers between underwriting risk, depository functions, and securities underwriting were eliminated.

---

Definitions:

Diffusion

A way in which a novel concept is disseminated across distinct mediums over time within a community.

Process Innovations

Innovations that improve the efficiency or effectiveness of organizational processes, often leading to increased productivity or quality.

Diffuse or Die

A phrase implying that for innovations or ideas to survive, they must be spread and adopted widely; otherwise, they risk being forgotten or becoming obsolete.

Richard Walton

A figure associated with theories or concepts in organizational behavior or management, but requires further context for a specific definition.