The following examples contributed to the erosion of the​ Glass-Steagall act except the statement that indicates that
A. the Federal Reserve introduced a loophole that affiliates of approved commercial banks used.
B. an executive order prohibited banks from purchasing securities.
C. regulatory agencies allowed banks to engage in some real estate and insurance activities.
D. brokerage firms used money market mutual funds and cash management accounts.

Respuesta :

Answer: Option (B)

Explanation:

There are several reasons that contributed to erosion of the Act but executive orders that tended to prohibit the banks from purchasing the securities wasn't one of them. Glass–Steagall legislation tends to describes the four provisions of US Banking Act (1933) that inclined towards separating investment and commercial banking.