Banking Regulations and Financial Crises

Banking Regulations and Financial Crises

Assessment

Interactive Video

Business

9th - 10th Grade

Hard

Created by

Patricia Brown

FREE Resource

The video tutorial discusses the Glass-Steagall Act of 1933, signed by President Franklin D. Roosevelt as part of the New Deal to prevent another stock market crash and bank failures. It separated commercial and investment banking to protect depositors from speculative losses. The Act mandated banks to choose between commercial and investment banking activities, impacting financial giants like JP Morgan. In 1999, the Act was partially repealed by the Gramm-Leach-Bliley Act, which allowed affiliations between commercial and investment banks, contributing to the 2008 financial crisis. The video concludes with key takeaways about the Act's significance and its role in financial regulation.

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10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the primary aim of the Glass-Steagall Act of 1933?

To merge commercial and investment banks

To encourage stock speculation

To prevent a repeat of the 1929 stock market crash

To promote investment banking

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How did the Glass-Steagall Act protect depositors?

By reducing bank taxes

By increasing interest rates

By creating a firewall between commercial and investment banking

By allowing banks to invest in stocks

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which financial giant was directly affected by the Glass-Steagall Act?

Goldman Sachs

Wells Fargo

Bank of America

JP Morgan and Company

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the purpose of the Bank Holding Company Act of 1956?

To deregulate banks

To regulate bank holding companies

To promote investment banking

To eliminate bank taxes

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What did the Gramm-Leach-Bliley Act of 1999 do?

Promoted subprime lending

Strengthened the Glass-Steagall Act

Eliminated restrictions between commercial and investment banks

Increased bank taxes

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is believed to have sparked the 2008 financial crisis?

The strengthening of the Glass-Steagall Act

The rise in subprime lending after the repeal of the Glass-Steagall Act

The increase in bank taxes

The promotion of investment banking

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was a key feature of the Glass-Steagall Act?

It mandated banks to choose either commercial or investment banking

It allowed banks to engage in both commercial and investment banking

It reduced oversight on banks

It promoted stock speculation

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