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The 2001 Bank Act Reform legislation provides ____.
A) greater flexibility for bank involvement in the IT area
B) a list of restricted activities
C) details on why banks cannot expand their use of information technology
D) less ability for banks to join strategic alliances and joint ventures
Answer: A
Diff: 1 Type: MC Page Ref: 265
Skill: Recall
Objective List: 11.8 Understanding the 2001 Bank Act Reform
The 2001 Bank Reform Act states that ____.
A) medium sized banks can be closely held if there is a 35 percent public float
B) large banks with shareholders equity greater than $5 billion can be closely held
C) all banks, regardless of size and capitalization, can be closely held
D) small banks must be widely held
Answer: A
Diff: 1 Type: MC Page Ref: 265
Skill: Recall
Objective List: 11.8 Understanding the 2001 Bank Act Reform
Merger review policy within the 2001 Bank Act Reform acknowledges that ____.
A) mergers are legitimate business options
B) mergers are anti-competitive and reduce financial stability
C) mergers are only allowable within small, widely held, banks
D) mergers are only allowable if the public believes they are warranted
Answer: A
Diff: 1 Type: MC Page Ref: 266
Skill: Recall
Objective List: 11.8 Understanding the 2001 Bank Act Reform
Describe some of the major implications of the 2001 Bank Act Reform.
Answer: A bank holding company structure, new ownership rules, expanded permitted
investments, expanded access to the payments and clearance system and a transparent merger
review policy will allow opportunities for strategic alliances and joint ventures. These
developments will create a more dynamic market for financial services leading to the possibility
of greater economic growth.
Diff: 1 Type: SA Page Ref: 267
Skill: Recall
Objective List: 11.8 Understanding the 2001 Bank Act Reform