The Glass-Steagall Act

question 161

Multiple Choice

The Glass-Steagall Act

• A)was created in 1933 to divide commercial banking from investment banking.
• B)allowed banks to become more diverse in the investments they were allowed to make.
• C)made U.S.banks similar to the "universal banks" of continental Europe.
• D)created conflicts of interest between commercial banks and investment banks.

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Definitions:

HR Due Diligence

HR Due Diligence is a comprehensive appraisal of a business's human resources function prior to a merger, acquisition, or other major financial transaction, focusing on assessing the strengths and vulnerabilities of the workforce.

Reduction Planning

The strategic process of planning to decrease the size of a workforce or scale down operations in a structured and least harmful manner.

Two Competitors

Refers to a situation where two companies are in direct competition with each other in the same market segment or industry.

Horizontal Merger

A business consolidation that occurs between firms that operate in the same industry, often aiming to create synergies and improve competitive position.