The McFadden Act of 1927

question 128

Multiple Choice

The McFadden Act of 1927

• A) effectively prohibited banks from branching across state lines.
• B) required that banks maintain bank capital equal to at least 6 percent of their assets.
• C) effectively required that banks maintain a correspondent relationship with large money center banks.
• D) did all of the above.

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Definitions:

AASB 136

The Australian Accounting Standards Board standard that details the accounting treatment for impairments of assets.

Impairment

The action of or situation where the value of an asset is corrected downwards in the company's books to reflect a loss in value, ensuring the asset's recorded cost does not exceed its recoverable amount.

Issued Capital

The total value of a company's shares that have been issued to shareholders, representing the equity funding provided by shareholders.