The Depository Institutions Deregulation and Monetary Control Act of 1980

question 75

Multiple Choice

The Depository Institutions Deregulation and Monetary Control Act of 1980

• A)separated investment banks and commercial banks.
• B)restricted the use of ATS accounts.
• C)imposed restrictive usury ceilings on large agricultural loans.
• D)increased deposit insurance from $40,000 to $100,000.

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Definitions:

EPS

Earnings Per Share, a financial metric used to indicate the profitability of a company on a per-share basis.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

Financial Leverage

The use of borrowed funds with the goal to increase the potential return on investment.

Leveraged Firm

A company that uses debt along with equity to finance its assets, often resulting in higher potential returns but also higher risk.