the economics of money, banking, and financial markets

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11.8 The 2001 Bank Act Reform

1. 
   

   The Bank Act Reform took effect in ____.
   A) October 2001
   B) January 2001
   C) December 2001
   D) May 2001
   Answer: A
   Diff: 1 Type: MC Page Ref: 263
   Skill: Recall
   Objective List: 11.8 Understanding the 2001 Bank Act Reform

   
   


2. 
   

   Prior to the Bank Act Reform, the organizational structure of Canada's bank financial groups
   was the ____ model.
   A) bank-as-parent
   B) financial liberalization
   C) securitization
   D) British universal
   Answer: A
   Diff: 1 Type: MC Page Ref: 264
   Skill: Recall
   Objective List: 11.8 Understanding the 2001 Bank Act Reform

   
   


3. 
   

   One advantage of the holding company form of corporate ownership is that ____.
   A) it allows them to engage in other activities related to banking
   B) there is more regulation
   C) it demands less flexibility to achieve economies of scale
   D) it prevents strategic partnerships
   Answer: A
   Diff: 1 Type: MC Page Ref: 264
   Skill: Recall
   Objective List: 11.8 Understanding the 2001 Bank Act Reform

   
   


4. 
   

   Holding companies are viable options for financial groups if the transition to a holding
   company would be ____ and exhibit ____.
   A) tax-neutral; decreased costs
   B) tax-neutral; economies of scope
   C) tax-free; decreased costs
   D) tax-free; fewer joint ventures
   Answer: A
   Diff: 1 Type: MC Page Ref: 264
   Skill: Recall
   Objective List: 11.8 Understanding the 2001 Bank Act Reform