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CLEP US History II

Category - Economic Development

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The effective repeal of which Great Depression-era financial reform ultimately played a role in the financial crisis of the 2000s and 2010s?

Uniform Prudent Investor Act
Securities Act
Investment Company Act
Smoot-Hawley Tariff Act
Glass-Steagall Act

Explanation

Answer: E - In 1999, Congress passed the Gramm-Leach-Bliley Financial Modernization Act, which effectively repealed portions of the Glass-Steagall Act of 1933. The repealed portions of Glass-Steagall pertained to banking regulations prohibiting certain acts of speculation. As a result, there was a growth of super-banks, which controlled such a significant portion of the nation’s wealth that they could not be allowed to fail, as bad businesses ultimately do.

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CLEP US History II

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CLEP US History II

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