The Glass-Steagall Act

question 126

Multiple Choice

The Glass-Steagall Act:

• A) maintained the gold standard.
• B) had little impact on the banking system.
• C) made legal the buying and selling of stocks by banks.
• D) established the Federal Deposit Insurance Corporation.
• E) is still in effect today.

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Definitions:

Deadweight Loss

An economic inefficiency that occurs when the equilibrium in a market is not achieved or when a market fails to allocate resources efficiently.

Excise Tax

A tax on the sale of specific goods or services, often included in the price of the product.

Hamburgers

A popular food item consisting of a cooked patty of ground meat, usually beef, placed inside a sliced bread roll or bun.

Deadweight Loss

A loss in economic efficiency that occurs when the equilibrium outcome is not achievable or is not achieved.