The Most Detrimental Effect of the 1999 Repeal of the Glass-Steagall

question 86

Multiple Choice

The most detrimental effect of the 1999 repeal of the Glass-Steagall Act was that it

• A)was a major contributor to the financial crisis of 2008.
• B)was a major detriment to mergers of financial institutions.
• C)American financial institutions were less able to compete with their European counterparts.
• D)increased the differentiation among banks,securities firms,and insurance companies.

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Definitions:

Negative Externality

An adverse effect or cost suffered by a third party due to an economic transaction they were not involved in.

Government Standards

Official requirements established by governmental bodies that products, services, or processes must meet, often related to quality, safety, or compatibility.

Emission Reductions

The process of lessening the amount of pollutants released into the atmosphere, often targeting greenhouse gases to combat climate change.

Government Standards

Regulations established by the government to dictate the minimum acceptable levels of safety, quality, or performance for products, services, or actions.