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11 WGU C214 Financial Management Objective Assessment Exam Study Guide Questions and Answers (Verified Answers)
1.The Foreign Corrupt Practices Act of 1977: was enacted for the purpose
of making is unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business.
2.What does the Sarbanes=Oxley Act require companies to do?: Have
internal control audits.
3.Dodd Frank Act: created the Financial Stability Oversight Council
4.Volcker Rule: Limits investment in hedge funds by banks.
5.The Volker Rule, which is section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act,: is meant to restrict big U.S banks 1 / 2
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11 from making risky speculative bets with funds from their own accounts through proprietary trad- ing.
6.Dodd- Frank regulates which segment of the U.S. Economy?: Banking
Indus- try 7.The repeal of the Glass-Steagall Act through mainly the
Gramm-Leach-Bliley Financial Services Modernization Act of 1999: was
blamed for allowing financial institutions to become "too big to fail."
8.Glass- Steagall Banking Act of 1933: was designed to decrease the
number of banks that were failing. The Glass- Steagall Act essentially set up a wall between commercial/consumer banking and investment banking.
9.Rule 144A Securities Act of 1933: provides a safe harbor from
registration requirements of the Securities Act of 1933 for certain private resales of minimum $500,000 units of restricted qualified institutional buyers (QIBS)
10.What is one of the roles of SEC?: It regulates companies that sell
debt and equity to the public.
11.What are two basic types of financial instruments?: Stocks and bonds
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