Asked by dreya flores on Jun 14, 2024
Verified
The Banking Acts of 1980 and 1999 contributed to the financial crisis in 2008 by
A) increasing the number of small banks.
B) encouraging the creation of more financial institutions that were "to big to fail".
C) restricting the trading of toxic assets.
D) creation of a large number of bankrupted financial institutions.
Banking Acts
Laws regulating the operation of banks, aiming to ensure stability and confidence in the financial system.
Financial Crisis
A situation where financial assets suddenly lose a large part of their nominal value, impacting financial institutions and economies.
Toxic Assets
Financial assets whose value has significantly dropped and are difficult to sell, often related to mortgages, whose performance is worse than expected.
- Recognize the impact of financial regulations on the banking sector and financial crises.
Verified Answer
Learning Objectives
- Recognize the impact of financial regulations on the banking sector and financial crises.
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