All of the Following Are Points of the Dodd-Frank Wall

question 53

Multiple Choice

All of the following are points of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 EXCEPT

• A) creating a Consumer Financial Protection Bureau.
• B) requiring mortgage lenders to review income and credit histories of applicants to ensure they can afford payments.
• C) imposing tighter restrictions on banks to limit risky investments.
• D) requiring firms that create mortgage backed securities to keep at least 50 percent of their value as reserves.

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Definitions:

Convertible Bond

A type of bond that can be converted into a predetermined number of shares of the issuing company's stock.

Straight Bond Value

The value of a convertible bond if it could not be converted into common stock.

TWX Call Option

An option contract that gives the holder the right, but not the obligation, to buy Time Warner Inc. (TWX) stock at a specified price within a certain time period.

Strike Price

The set price at which an option can be bought or sold when it is exercised.