The Belief That Bank Failures Were Regularly Caused by Fraud

question 71

Multiple Choice

The belief that bank failures were regularly caused by fraud or the lack of sufficient bank capital explains,in part,the passage of

• A)the National Bank Charter Amendments of 1918.
• B)the Garn-St. Germain Act of 1982.
• C)the National Bank Act of 1863.
• D)Federal Reserve Act of 1913.

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Definitions:

Exclusive Dealing

An agreement where a seller agrees to sell, and a buyer agrees to buy, products or services exclusively from each other.

Horizontal Restraint

A term used in antitrust law to describe practices that restrict competition among firms at the same level in the supply chain.

Tying Arrangement

A commercial strategy where a seller requires a buyer to purchase a secondary product as a condition of buying a desired primary product.

Sherman Act

A landmark federal statute in the scope of U.S. antitrust law passed by Congress in 1890, which prohibits monopolistic practices and promotes competition.