Pleased with the service provided by a national brokerage house when he bought and sold stocks and bonds, Ted would like to have this brokerage firm handle more of his financial needs. If Ted explores the services offered by such firms in more depth, he will find that:

Question

Quizplus · Accepted Answer

The passage states that brokerage firms are becoming serious competitors for banks and other depository institutions by offering high-yield combination savings and checking accounts and money market accounts, as well as certain types of loans. Option A is incorrect as it states that federal laws prohibit brokerage firms from competing with banks, savings and loan associations, and credit unions, which is not mentioned in the passage. Option B is incorrect as it states that brokerage firms are typically less efficient at providing banking services than banks, which is not supported by the passage. Option D is incorrect as it states that federal law prohibits individual investors from holding both a checking account and a securities account with the same firm, which is not mentioned in the passage.

Pleased with the Service Provided by a National Brokerage House