Question

The _____ Act limits the types of assets commercial banks can buy; the amount of capital they must maintain; and the use of derivative instruments such as options, futures, and structured investment products.

Answer 1

Dodd-Frank Act of 2010

Step-by-step explanation:

The Dodd-Frank Wall Street Reform and Consumer Protection Act was enacted as stated by its name to change how Wall Street worked (well not only Wall Street, but the financial system) and to specially protect the small investor. It was promoted by Senator Chris Dodd and Representative Barney Frank as a result of the great recession suffered between 2008 and 2010, which was primarily caused by an inefficient and sometimes even corrupt financial system. It is a very long and complex law, but it mainly places strict regulations on lenders, banks and other financial institutions.