Which of the following statements is (are)true with respect to the financial services industry?
I.The number of firms operating in the industry continues to increase at a high rate.
II.The Financial Modernization Act of 1999 permits financial institutions to compete in other financial markets outside their core business area.
A)I only
B)II only
C)both I and II
D)neither I nor II

Question

Quizplus · Accepted Answer

Statement I is false because there has been a trend of consolidation and mergers in the financial services industry, leading to a decrease in the number of firms.

Statement II is true as the Financial Modernization Act of 1999, also known as the Gramm-Leach-Bliley Act, eliminated barriers between different types of financial institutions and allowed them to engage in a wider range of financial activities outside their core business area.

Which of the Following Statements Is (Are)true with Respect to the Financial