HS 300

Question 1

May Day 1975

Answer 1

Deregulated fixed commission prices on brokerage transactions

Question 2

Securities Act of 1933

Answer 2

Prohibits deceit, misrepresentation and other fraud in the sale of securities. Referred as the “truth in securities” law.

Question 3

Securities Exchange Act of 1934

Answer 3

Created the Securities Exchange Commission and regulated authority to create self-regulatory organizations

Question 4

Banking Act of 1933 (Glass-Steagall Act):

Answer 4

Created the Federal Deposit Insurance Corporation (FDIC) as a temp agency to ensure deposits.

Question 5

Banking Act of 1935

Answer 5

Created the FDIC as a permanent organization

Question 6

Investment Company Act of 1940

Answer 6

Regulates companies, including mutual funds, that invest, reinvest and trading in securities.

Question 7

Investment Advisers Act of 1940

Answer 7

Requires, with certains exceptions, that those compensated for advising others about securities investments must register/comply with the SEC

Question 8

McCarran-Ferguson Act of 1945

Answer 8

Reinstated states the right to regulate insurance companies, provided the states regulated it.

Question 9

Bank Holding Company Act of 1956

Answer 9

Required federal reserve approval to establish a bank holding company

Question 10

Employee Retirement Income Security Act of 1974(ERISA):

Answer 10

Requires minimum standards for pension plans.

Created the Pension Benefit Guaranty Corporation

Question 11

Depositary Retirement Income Security Act of 1974

Answer 11

Established “NOW Accounts” and established Depository Institutions Deregulation Committee.

Question 12

Riegle-Neal Interstate Banking and Breaching Efficiency Act of 1994:

Answer 12

Permitted adequately capitalized and managed bank holding companies to acquire banks in any state of the year after enactment.

Question 13

National Securities Market improvement Act of 1996

Answer 13

Delineated requirements for SEC and state registration of investment advisers and established the national de minimus standard for state registration of investment advisers.

Question 14

Gramm-Leach Bliley Act of 1999:

Answer 14

Repeals the Glass Steagall Act
Banks can sell insurance
Insurance companies can create banks

Question 15

Sarbanes-Oxley Act of 2002:

Answer 15

Created reforms/disclosures to prevent corporate accounting fraud
Created the Public Company Oversight Board (PCOB)
Result of fraud of Enron

Question 16

Dodd-Frank Wall Street Reform Act:

Answer 16

Regulated the over-the counter swaps,
Increased regulatory enforcement
Raised DIPC cash coverage to $250,000
Created the Consumer Financial Protection Bureau

Question 17

Jump-Start Our Business Startups:

Answer 17

Removed the prohibition on general solicitation and advertising related to securities. Allows small business to use crowdfunding

Question 18

Consumer Protection Acts:

Answer 18

Consumer protection laws with the lending/borrowing process: To ensure there is always a liquid market to allow consumers to spend to stimulate the economy.

Question 19

Supply and demand:

Answer 19

The higher the price, the lower the demand

The high the price of the good, the more producers are willing to make that good available