Which of the Following Is True of the Garn­St

question 35

Multiple Choice

Which of the following is true of the Garn­St.Germain​ Act?

• A)​It allows thrifts to invest up to 10 percent of portfolios in riskier assets such as stocks and real estate.
• B)​It creates the system of national banks to be chartered by the Comptroller of the currency.
• C)​It creates the Federal Reserve system and gives it the responsibility as the lender of last resort.
• D)​It prohibits commercial banks from investment banking activities.

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Definitions:

Equilibrium Price

The economic value where the quantity of goods brought to the market equals the quantity taken by consumers.

Technological Advancement

The process of innovation and improvement in technology, leading to more efficient production methods and new products.

Equilibrium Quantity

The quantity of goods or services supplied is exactly equal to the quantity of goods or services demanded.

Market Demand Schedule

A table showing the quantities of a particular good or service that consumers will purchase at various prices over a specified period.