In response to the Great Depression, the ________ restricted investment banks and commercial banks from crossing into each other's businesses and potentially abusing their fiduciary duties at the expense of customers
A) Services Modernization Act
B) Wall Street Reform Act
C) Consumer Protection Act
D) Dodd-Frank Act
E) Glass-Steagall Act
Answer: E
Explanation: In the aftermath of the Great Depression, the Glass-Steagall Act of 1933 (which also established the FDIC) aimed to restore confidence in U.S. financial houses by restricting investment banks and commercial banks from crossing into each other's businesses and potentially abusing their fiduciary duties at the expense of customers.
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Indicate whether the statement is true or false
When the growth rate of the money supply increases, interest rates end up being permanently lower if
A) the liquidity effect is larger than the other effects. B) there is fast adjustment of expected inflation. C) there is slow adjustment of expected inflation. D) the expected inflation effect is larger than the liquidity effect.