Which of the following factors contributed to the problems that banks began to face during the 1960s and 1970s?

Question

Quizplus · Accepted Answer

The banking regulations enacted during the 1930s, specifically the Glass-Steagall Act which separated commercial banking from investment banking, contributed to the problems banks faced in the 1960s and 1970s. The Act limited the types of activities that commercial banks could engage in, which restricted their ability to diversify and compete with non-bank financial institutions. This contributed to a decrease in profitability and a decline in the relative importance of commercial banks. The other options, A, B, and D, may have had an impact on the banking industry, but they were not the primary factors contributing to the problems banks faced during this period.

Which of the Following Factors Contributed to the Problems That