Which of the Following Is True of the Dodd-Frank Legislation

question 30

Multiple Choice

Which of the following is true of the Dodd-Frank legislation?

• A) Federal Deposit Insurance Corporation-insured institutions are required to keep their interests in hedge funds and private equity funds.
• B) Investment banks have to set aside reserves to cover all forms of expenditure.
• C) Originators of mortgage securities must hold 5 percent of the credit risk, thus retaining an interest in the performance of the securities.
• D) Banks will be allowed to trade in a proprietary manner but cannot continue to buy or sell from their own accounts to hedge against other investments.

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Definitions:

Drug Use

The consumption of legal or illegal substances for their psychoactive effects, often leading to dependence or addiction.

Adolescents

Refers to young people in the transitional phase of growth and development between childhood and adulthood, typically between ages 13 and 19.

Harm Reduction Programs

Initiatives aimed at minimizing the negative consequences associated with certain behaviors, such as drug use or sexual activity, without necessarily stopping the behavior.

Substance Use

involves the consumption of drugs or alcohol, especially in a way that is illegal or harmful.