Which of the Following Was a Major Outcome of the Banking

question 43

Multiple Choice

Which of the following was a major outcome of the Banking Act of 1933?

• A)It established the Federal Reserve as the central bank in the U.S.
• B)It banned commercial banks from competing with non-depository institutions.
• C)It prohibited fraud in the sale of newly issued stocks and bonds.
• D)It created the Securities and Exchange Commission to oversee the securities industry.

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Definitions:

Amortized Cost Model

An accounting technique used to gradually write down the cost of an intangible asset over its useful life.

Fair Value

The price that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Profit Or Loss Model

A financial model that calculates the difference between a company’s revenues and its expenses, helping understand its profitability over a certain period.