1. Answer TRUE or FALSE or provide a COUNTER EXAMPLE a) The Glass-Steagall Act a

Question

1. Answer TRUE or FALSE or provide a COUNTER EXAMPLE a) The Glass-Steagall Act allowed branches of British Commercial Banks operating in the US to engage in Investment Banking activities b) The Securities Act of 1933 regulated the offering of securities and IPOs c) The merger of AOL and Time Warner was approved in violation of the Glass-Steagall Act d) The Gramm-Leach-Bliley Act of 1999 prohibits Private Equity firms from owning insurance companies e) Which of the following is NOT important in selecting asset managers: 1. Performance Record 2. Investment Strategy 3. Fees 4. Manager reputation 5. Manager’s Alma Matter 6. Manager professional certifications f) Leverage Buyouts (LBOs) turn around heavily indebted companies g) Zero or nearly zero interest rates likely to help rather than hurt US exports h) Higher interest rates induce more investment activity i) Low interest rates temporarily inflate asset prices j) Low oil prices are a net positive for US GDP

Explanation / Answer

1) FALSE. Glass-Steagall Act was passed in 1933, to prohibit commercial banks from engaging in investment banking.

2) TRUE

3) TRUE

4) FALSE. The Gramm-Leach-Bliley law provided for expansion of insurance companies.

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