Due to Banking Regulations, Banks in the Early Part of the Twentieth

question 56

Multiple Choice

Due to banking regulations, banks in the early part of the twentieth century were not allowed to nationalize and thus many banks had most of their investments tied up in the agricultural sector. The Dust Bowl and retaliatory tariffs caused many banks to fail, particularly during the Great Depression. Ignoring legal and cultural restrictions, what piece of advice would have served banks very well during this time?

• A) employing compound returns
• B) diversification
• C) having more low-risk investments
• D) reducing the fees the banks charged on checking accounts

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Definitions:

Assumptive Close

A type of close that assumes the prospect will buy.

Visual Aids

Tools such as charts, diagrams, videos, and models used to enhance understanding, retention, or presentation of information.

Direct Close

An explicit type of closing wherein the salesperson asks the customer for a decision in a straight-forward, candid manner.

Sales Negotiations

The process of discussions between the buyer and seller aimed at reaching a mutually beneficial agreement on terms.