GLBA

How else is GLBA called?

• Dodd-Frank Wall Street Act

• Reform and Consumer Protection Act

• Financial Services Modernization Act

• Finance and Commerce Services Act

The GLBA has been criticized for contributing to the 2008 financial crisis.

• True

• False

Answer explanation

Some economists blamed the GLBA for contributing to the 2008 financial recession. They argued the repeal of the Glass-Steagall Act opened the doors for banks to engage in speculative investments using short-term hedge funds and other high-yield, high-risk financial instruments.

Which of the following is NOT a provision of the GLBA?

• The Privacy Rule

• The Safeguards Rule

• The Red Flags Rule

• GLBA has all of these

Answer explanation

The Red Flags Rule is a regulation created by the Federal Trade Commission (FTC) to help prevent identity theft. It requires businesses and organizations that handle sensitive personal information to develop and implement a written program to detect, prevent, and mitigate identity theft.

What government agency enforces the GLBA?

• Federal Trade Commission (FTC)

• Securities and Exchange Commission (SEC)

• Consumer Financial Protection Bureau (CFPB)

• Internal Revenue Service (IRS)

Which of the following is an example of a data protection requirement under the GLBA?

• Implementing a written information security plan

• Offering customers a loyalty program

• Publishing annual financial reports

• Providing employees with health insurance benefits

Which of the following is NOT considered a financial institution under the GLBA?

• Banks

• Credit unions

• Insurance companies

• Telecommunications companies

Which of the following is NOT a requirement of the Safeguards Rule?

• Designating one or more employees to coordinate the information security program

• Identifying and assessing the risks to customer information

• Disclosing information to third parties after obtaining the customer's consent

• Regularly monitoring and testing the information security program

What is the purpose of the Privacy Rule?

• To allow financial institutions to share customer information with third parties without the customer's consent

• To require financial institutions to disclose their information-sharing practices to customers

• To prohibit financial institutions from collecting certain types of customer information

• To limit the amount of information that financial institutions can collect from customers

Which of the following is a consequence of non-compliance with the GLBA?

• Criminal penalties, including fines and imprisonment

• Building trust and confident with customers

• Revocation of the financial institution's charter or license

• Boosting of reputation and popularity

Which of the following is an example of a financial institution that is subject to the GLBA?

• A public university that accepts federal student loans

• A small sari-sari store that accepts loans

• A national bank that offers checking accounts and loans

• A non-profit organization that accepts donations through its website