The Volcker rule in the Dodd-Frank Act does which of the following?
A) Creates a host of new agencies to streamline the regulatory process
B) Increases oversight of specific institutions regarded as a systemic risk
C) Introduces significant regulation of hedge funds
D) Forbids insured depositories from proprietary trading

Question

Quizplus · Accepted Answer

The Volcker rule in the Dodd-Frank Act prohibits insured depositories from engaging in proprietary trading, which involves using their own funds to make risky investments for profit. This is intended to prevent banks from taking excessive risks with their depositors' money and to reduce the likelihood of another financial crisis.

The Volcker Rule in the Dodd-Frank Act Does Which of the Following