The Banking Act of 1933

question 129

Multiple Choice

The Banking Act of 1933

• A)allowed banks to hold any assets,without the need for approval by the Fed
• B)allowed banks to hold any assets,subject to approval by the Fed
• C)allowed banks to hold U.S.government securities,subject to approval by the Fed
• D)forbade banks from buying corporate stocks and bonds,in order to put a ceiling on bank profits
• E)forbade banks from buying corporate stocks and bonds,in order to minimize bank risk

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Definitions:

Negotiate

The process of discussing terms and conditions to reach a mutual agreement between parties.

Check

A written order on a bank or banker payable on demand to the person named or his order or bearer and drawn by virtue of credits due the drawer from the bank created by money deposited with the bank.

Conditional Indorsement

Refers to a signature on a financial document, such as a check, that limits the conditions under which it can be valid.

Negotiability

The quality of a financial instrument, such as a check or bill of exchange, that allows it to be transferred from one party to another through endorsement or delivery.