Which of the Following Is an Accurate Statement About Universal

question 24

Multiple Choice

Which of the following is an accurate statement about universal banks?

• A) In Germany universal banks do everything under one roof, including direct investment in the shares of nonfinancial firms.
• B) In Germany the provision of insurance, banking, and securities must be done by separate corporations.
• C) As in Germany, universal banks in the United States do everything under one roof, including direct investment in the shares of nonfinancial firms.
• D) Universal banks in the United States account for the largest share of financial intermediary assets.

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Definitions:

Debt of Another

Debt of another involves liabilities or obligations that one party assumes on behalf of another party, typically through a guarantee or cosigning arrangement.

Uniform Electronic Transactions Act

A law adopted by many states in the U.S., which gives legal validity to electronic signatures and records in commercial transactions.

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed to be enforceable.

Parol Evidence Rule

A legal principle in contract law that prevents parties from presenting extrinsic evidence of prior or contemporaneous negotiations to alter or contradict the terms of a written agreement.