The Legislation That Separated Investment Banking from Commercial Banking Until

question 29

Multiple Choice

The legislation that separated investment banking from commercial banking until its repeal in 1999 is known as the

• A)National Bank Act of 1863.
• B)Federal Reserve Act of 1913.
• C)Glass-Steagall Act.
• D)McFadden Act.

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Definitions:

Transaction

An exchange or transfer of goods, services, or funds between two or more parties.

Benefit

An advantage or positive outcome gained from something, often used in the context of employment perks or features of a product or service.

Moral Hazard

Moral hazard occurs when one party in a transaction takes on more risk because they know that someone else will bear the cost of those risks.

Transaction

The act of conducting business between two or more parties, often involving the exchange of goods, services, money, or information.