APFIVE Gramm-Leach-Bliley Act and Banking Deregulation
All of the following statements regarding the effects of the repeal of Glass-Steagall under the Gramm-Leach-Bliley Act of 1999 are true except:
A
Its repeal enabled banks to merge commercial and investment functions, escalating concerns about financial risk.
B
The repeal of Glass-Steagall ensured that banks maintained a strict separation between commercial and investment activities.
C
The Gramm-Leach-Bliley Act fundamentally changed banking regulations by removing key restrictions enforced under Glass-Steagall.
D
Critics argue that the repeal contributed to the financial instability that precipitated the 2008 recession.
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