Which of the Following Was the Major Outcome of the Financial

question 49

Multiple Choice

Which of the following was the major outcome of the Financial Services Modernization Act of 1999?

• A)It reversed the Glass-Steagall Act's prohibition of commercial banks selling insurance or acting as investment banks.
• B)It established the Federal Reserve Insurance Corporation, which insured depositors against financial losses when a bank failed.
• C)It prohibited misrepresentation or other forms of fraud in the sale of newly issued stocks and bonds.
• D)It required that all publicly traded firms with at least 500 shareholders and $10 million in assets file quarterly and annual financial reports with the SEC.

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Definitions:

Real Option

The value of additional decision-making opportunities available to an investor or company once an initial investment has been made.

Financial Results

The summary of a company's financial performance and position, typically reported on a quarterly and annual basis.

Risk-Adjusted Rates

In capital budgeting, a rate used in place of the cost of capital to reflect especially risky projects.

Interest Rate

The amount charged, expressed as a percentage of the principal, by a lender to a borrower for the use of assets.