15) Which of the following is true? A) Commercial banks and investment banks hav

Question

15) Which of the following is true? A) Commercial banks and investment banks have always been owned b B) C) Commercial banks and investment banks cannot be owned today by the same owne D) Commercial banks and investment banks can be owned by the same owner today, y the same own they are two different departments of the same financial institution. Commercial banks and investment banks are now allowed to be owned by the same owner -not today and not since 1933. under the Glass-Steagall Act of 1999. Until the Glass-Steagall Act was passed in 1 they could be owned by the same owner. from 1933 until 1999, the two types of banks were separately owned under the Gla Steagall Act. 6) Larry has just reached the point at which he is eligible for his company's pension benefits, he 'll retain rights to benefits even if he leaves the firm. Larry is now said to be: A) insured B) invested C) vested D) guaranteed

Explanation / Answer

Question 15

Glass-Steagall Act was passed in 1933. This Act seperated the commercial and investment banking and prohibited same entity to engage in both spheres.

However, in 1999, Glass-Steagall Act was repealed with passing of Gram-Leach-Bliley Act. This new Act allowed the same entity to own both commercial and investment banks.

So, commercial banks and investment banks can be owned by the same owner today, but from 1933 until 1999, the two types of banks were seperately owned under the Glass-Steagall Act.

The correct answer is the option (D).

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