Which of the Following Is True Regarding Investment Banks

question 14

Multiple Choice

Which of the following is true regarding Investment Banks?

• A) As a result of the financial crisis of 2008, all stand alone Investment banks either failed, were merged into commercial banks, or became commercial banks.
• B) Under the Glass-Steagal act, commercial banks were allowed to operate as Investment banks.
• C) When Glass-Steagal was repealed in 1999, commercial banks and Investment banks had to be separate entities.
• D) As of 2010, stand alone Investment banks are numerous.

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Definitions:

Ratio Analysis

A quantitative analysis of information contained in a company’s financial statements, used to evaluate the performance, liquidity, profitability, and solvency of the business.

Financial Statements

Reports that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.

Cash Management

The process of collecting, managing, and investing a company's cash flow in an efficient and profitable manner.

Profitability Ratios

Financial metrics used to assess a business's ability to generate profit relative to its revenue, operating costs, or shareholders' equity over time.