The Banking Act of 1933

question 129

Multiple Choice

The Banking Act of 1933

• A)allowed banks to hold any assets,without the need for approval by the Fed
• B)allowed banks to hold any assets,subject to approval by the Fed
• C)allowed banks to hold U.S.government securities,subject to approval by the Fed
• D)forbade banks from buying corporate stocks and bonds,in order to put a ceiling on bank profits
• E)forbade banks from buying corporate stocks and bonds,in order to minimize bank risk

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Definitions:

Sales Tax

A tax levied on the cost (at retail) of a broad group of products.

Federal Income Tax

The tax levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.

Taxation Principle

The underlying rules and theories that guide how taxes are levied on individuals and companies, focusing on equity, efficiency, and simplicity.

Excise Tax

A tax levied on the production of a specific product or on the quantity of the product purchased.