Identify the Procompetitive Effect of Banks' Expansion of Their Securities

question 87

Multiple Choice

Identify the procompetitive effect of banks' expansion of their securities activities.

• A)Reduces the degree of underpricing of new issues.
• B)Encourages stuffing of fiduciary accounts.
• C)Increased provision of cheap loans on the implicit condition that this loan is used to purchase securities.
• D)Use of lending powers by a bank to coerce a customer to buy the products sold by its securities affiliate.
• E)Use of inside information by a bank to set the prices, or help the distribution of securities offerings by its affiliate.

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Definitions:

Ethics

Moral principles that govern a person's behavior or the conducting of an activity.

Society's ATTitude

The collective opinions, values, and dispositions of a community or society towards particular topics or issues.

Market Values

The prevailing rate at which a good or service can be purchased or sold on the open market.

Right and Wrong

Ethical or moral principles that dictate what is considered just and unjust or good and bad behavior.