Multiple choice

1. The Banking Act of 1933, known as the Glass-Steagall Act, has effectively kept commercial banks out of the commercial lending area. 

True 

False 

2. Investment banking firms provide both financing and investment services for borrowers and lenders, respectively.

True 

False 

3. The 40% margin rule requires the buyer/seller of a security to provide at least 60% of the funds necessary to cover the transaction, borrowing 40%.

True 

False 

4. Venture capital firms compete with commercial banks for new business loans.

True 

False