To Prevent the Problems That Led to the 2008-2009 Financial

question 32

Multiple Choice

To prevent the problems that led to the 2008-2009 financial crisis from leading to future financial crises, the Obama administration proposes legislation that would include all of the following except

• A) removing some of the Federal Trace Commission's powers and creating a Consumer Financial Protection Agency
• B) giving the Federal Reserve less power over the financial industry
• C) creating a Financial Services Oversight Council to identify and address key risks to the financial industry
• D) establishing a new National Bank Supervisor to oversee federally chartered lenders
• E) new powers for the Securities and Exchange Commission to monitor credit rating industries for objectivity

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Definitions:

Interest Rate

The amount charged, expressed as a percentage, by a lender to a borrower for the use of assets over a specific period of time.

Investment

The allocation of resources, usually financial, in expectation of generating an income or profit in the future.

Money Supply

The overall financial resources quantity in an economy at a specified time.

Interest Rate

The percentage of a sum of money charged by a lender to a borrower for the use of money, typically expressed as an annual percentage.