Identify the Action Taken by OCC and the Federal Reserve

question 34

Multiple Choice

Identify the action taken by OCC and the Federal Reserve in 1997, to expand the permitted activities of bank holding companies.

• A)Repealed the Glass-Steagall barriers between commercial banking and investment banking.
• B)Allowed commercial banks to acquire directly existing investment banks.
• C)Allowed investment banks to offer banking products.
• D)Allowed investment banks to offer deposit products.
• E)All of the above.

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, indicating how much contributes towards covering fixed costs and generating profit.

Call Center

A centralized office used for receiving or transmitting a large volume of requests by telephone, often involving customer service or technical support.

Mixed Cost

An expense that has both fixed and variable components, changing in total with the level of activity but not in direct proportion.

Least-squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of squares of the differences between observed values and those predicted by a linear function.