Which of the following is NOT true? swaps (CDS) and collateralized debt obligations (CDO), later identified as two instruments that played a major role in the market failure of 2008. The Dodd Frank Act bans risky proprietary trading activities Under the Dodd Frank Act, a large financial institution can hold lower capital reserves because it has better reputation than a small financial institution. Under the Dodd Frank Act, a central bank will not tolerate TBTF and will fail large banks in a future crisis. The Dodd Frank Act provides finance customers protection.
Which of the following is NOT true? swaps (CDS) and collateralized debt obligations (CDO), later identified as two instruments that played a major role in the market failure of 2008. The Dodd Frank Act bans risky proprietary trading activities Under the Dodd Frank Act, a large financial institution can hold lower capital reserves because it has better reputation than a small financial institution. Under the Dodd Frank Act, a central bank will not tolerate TBTF and will fail large banks in a future crisis. The Dodd Frank Act provides finance customers protection.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation
Section: Chapter Questions
Problem 3Q
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Question
Which of the following is NOT true?
swaps (CDS) and collateralized debt obligations (CDO), later identified as two instruments that played a major role in the market failure of 2008.
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The Dodd Frank Act bans risky proprietary trading activities
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Under the Dodd Frank Act, a large financial institution can hold lower capital reserves because it has better reputation than a small financial institution.
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Under the Dodd Frank Act, a central bank will not tolerate TBTF and will fail large banks in a future crisis.
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The Dodd Frank Act provides finance customers protection. |
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