Which of the Following Is True of the Glass-Steagall Act

question 60

Multiple Choice

Which of the following is true of the Glass-Steagall Act?

• A)The act provides authority to the Federal Reserve to regulate bank holding companies and prevent them from branching out.
• B)The act enables banks to engage in more non-banking activities by operating subsidiaries.
• C)The act prohibits banks to own subsidiary firms that sold products other than banking services.
• D)The act encourages banks to meet the credit needs of their communities.

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Definitions:

Bank Reconciliation

The process of comparing and adjusting the balance shown in a company's bank statement with the amount shown in the company's own records.

Outstanding Checks

Checks that have been written and recorded in the payer's accounting system but have not yet been cashed or cleared by the bank.

Balance Per Bank

The balance as per bank refers to the amount of money shown in the bank's records as available in an account.

NSF Check

A cheque that has been returned by the bank because the account on which it was drawn did not have sufficient funds, stands for Non-Sufficient Funds.