The Gramm-Leach-Bliley Act Was Passed in 1999 by the U

question 17

Multiple Choice

The Gramm-Leach-Bliley Act was passed in 1999 by the U.S.Congress to allow

• A)Financial institutions to offer full financial services such as insurance and investment banking as well as traditional commercial banking
• B)Financial institutions to be sued by stockholders for off-balance sheet accounting errors
• C)Savings and loans to compete with commercial banks in both the commercial banking arena and mortgage loans
• D)European banks to acquire U.S.financial institutions.

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Definitions:

Excess Burden

The economic cost to society exceeding the revenue generated by a tax, often resulting from distortions in market behavior.

Economic Decisions

The choices made by individuals, businesses, governments, and other groups that affect the allocation of resources and the distribution of goods and services.

Excess Burdens

The economic inefficiencies that result from implementing a tax, often causing changes in consumption and production behaviors that lead to a loss in social welfare.

Nonneutral Taxes

Taxes that affect economic choices, potentially leading to inefficiencies or changes in market behavior, unlike neutral taxes which do not alter decision-making.