The Legislation That Separated Investment Banking from Commercial Banking Until

question 29

Multiple Choice

The legislation that separated investment banking from commercial banking until its repeal in 1999 is known as the

• A)National Bank Act of 1863.
• B)Federal Reserve Act of 1913.
• C)Glass-Steagall Act.
• D)McFadden Act.

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Definitions:

Money Supply

The total amount of money available in an economy at a particular time, including cash, coins, and balances held in checking and savings accounts.

Expected Price Level

This term represents the anticipated average price of goods and services in an economy over a certain period.

Potential GDP

The maximum possible level of output an economy can achieve when all resources are utilized efficiently, without causing inflation.

Prices

The amount of money required to purchase goods or services, acting as a signal in the market to influence supply and demand.