The Glass-Steagall Act of 1933 Prevented

question 41

Multiple Choice

The Glass-Steagall Act of 1933 prevented

• A)any firm that accepts deposits from underwriting stocks and bonds of corporations.
• B)any firm that accepts deposits from underwriting general obligation bonds of states and municipalities.
• C)any firm that accepts deposits from holding any corporate bonds in its asset portfolio.
• D)state-chartered banks from offering commercial loans.

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Definitions:

Direct Materials

Materials directly linked to the creation of certain products or services.

T-Accounts

A visual representation of accounts used in double-entry bookkeeping, showing debits on the left side and credits on the right.

Cost Of Goods Sold

The expenses directly related to the manufacture of products a company sells, which include the costs of materials and labor.

Manufacturing Overhead

All manufacturing costs that are not directly linked to the production of goods, including indirect materials, indirect labor, and other indirect expenses.