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The Glass-Steagall Act, before its repeal in 1999, prohibited commercial banks from
____.
A) issuing equity to finance bank expansion
B) engaging in underwriting and dealing of corporate securities
C) selling new issues of government securities
D) purchasing any debt securities
Answer: B
Diff: 1 Type: MC Page Ref: 256
Skill: Recall
Objective List: 11.5 Understanding the four pillar approach to Canadian banking
The primary reason for the recent reduction in the number of financial institutions is
____.
A) financial failures
B) re-regulation of banking
C) restrictions on branching
D) financial consolidation
Answer: D
Diff: 1 Type: MC Page Ref: 256
Skill: Recall
Objective List: 11.5 Understanding the four pillar approach to Canadian banking
The ability to use one resource to provide different products and services is ____.
A) economies of scale
B) economies of scope
C) diversification
D) vertical integration
Answer: B
Diff: 1 Type: MC Page Ref: 256
Skill: Recall
Objective List: 11.5 Understanding the four pillar approach to Canadian banking
The business term for economies of scope is ____.
A) economies of scale
B) diversification
C) cooperation
D) synergies
Answer: D
Diff: 1 Type: MC Page Ref: 256
Skill: Recall
Objective List: 11.5 Understanding the four pillar approach to Canadian banking