4-81 One of the Primary Reasons That Investment Banks Were

question 42

Multiple Choice

4-81 One of the primary reasons that investment banks were allowed to convert to bank holding companies during the recent financial crisis was recognition that

• A)their operating activities were too risky and they needed the cushion of bank deposits to alleviate funding risks.
• B)the industry had acquired too much capital during the previous decade.
• C)bank holding companies needed the ability to underwrite new issues of corporate securities.
• D)it was the only way an investment bank could qualify for federal bailout funds.
• E)the Federal Reserve was unable to purchase troubled assets from investment banks,but they could from bank holding companies.

Identify common licenses and copyright terms associated with software and creative works.

Distinguish between different types of intellectual property.

Understand the principles and applications of digital convergence.

Recognize various digital content formats and their purposes.

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Definitions:

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Bank Notes

Paper money issued by a central bank, constituting a common form of legal tender in many economies around the world.

Operating Activities

Activities that constitute the primary or main activities of a company, including production, sales, and delivery of goods and services.