The Dodd-Frank Act of 2010
A) Embodied the largest fiscal stimulus in U.S history
B) Extended federal insurance to equity investments
C) Extended federal regulation to any financial institution designated to be a systemically important financial institution
D) Gave the Fed responsibility for regulating securities markets

Question

Quizplus · Accepted Answer

The Dodd-Frank Act, officially called the Dodd-Frank Wall Street Reform and Consumer Protection Act, was enacted in response to the financial crisis of 2007-2008. Its primary aim was to prevent future financial crises by increasing the regulation of the financial industry. One of its key provisions was to extend federal regulation to any financial institution designated as a "systemically important financial institution" (SIFI), which means that these institutions are so large, interconnected, or pivotal to the financial system that their failure could be disastrous to the economy. This act did not embody the largest fiscal stimulus in U.S. history, extend federal insurance to equity investments, or give the Federal Reserve responsibility for regulating securities markets, which are responsibilities of other entities and legislation.