The Glass-Steagall Act of the 1930s was created to separate U.S. bank's commercial and investment sections, which later because an advantage to the U.S. banks because foreign banks were affected by having them combined.

Question

Quizplus · Accepted Answer

The Glass-Steagall Act was indeed created to separate commercial and investment banking in the U.S., but the advantage or disadvantage relative to foreign banks was not a primary consideration or clear outcome of the Act. The main goal was to prevent the kinds of banking practices that contributed to the 1929 stock market crash and ensuing Great Depression.

The Glass-Steagall Act of the 1930s Was Created to Separate