How Could Insurance Companies Get Around the Restrictive Provisions Imposed

question 135

Multiple Choice

How could insurance companies get around the restrictive provisions imposed by the bank holding company act of 1956?

• A)Through the organizational mechanism of establishing nonbank bank subsidiaries.
• B)By opening federally chartered thrifts.
• C)By offering credit-related life, accident, health, or unemployment loans.
• D)By buying a full-service bank and then divesting its demand deposits or commercial loans.
• E)Through the organizational mechanism of establishing nonbank bank subsidiaries and by buying a full-service bank and then divesting its demand deposits or commercial loans.

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Definitions:

Time-series Data

A sequence of data points collected or recorded at time-ordered intervals, often used for forecasting or statistical analysis.

Random Variations

Unpredictable fluctuations that affect data or processes, not attributable to any known cause.

Exponentially Smoothed Forecast

A method of forecasting that gives more weight to recent data points, using exponential smoothing to produce a smoothed time series.

Forecast Error

The difference between the actual value and the predicted value in a forecast, indicating the accuracy of the forecasting process.