The Most Important Developments That Have Reduced Banks' Income Advantages

question 10

Multiple Choice

The most important developments that have reduced banks' income advantages in the past thirty years include:

• A) the increase in off-balance sheet activities.
• B) the growth of securitization.
• C) the elimination of Regulation Q ceilings.
• D) the competition from money market mutual funds.

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Definitions:

Sarbanes-Oxley Act

A U.S. law enacted in 2002 to protect investors from fraudulent financial reporting by corporations.

Financial Statement Fraud

Deliberate manipulation of a company's financial records to present a false picture of its financial condition.

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and the government.

Sole Proprietorships

A business structure where a single individual owns and operates the business, taking on the responsibilities and benefits of the business.