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globaldesi
Joined: 28 Jul 2016
Last visit: 03 Jun 2025
Posts: 1,157
Given Kudos: 67
Location: India
Concentration: Finance, Human Resources
Schools: ISB '18 (D)
GPA: 3.97
WE:Project Management (Finance: Investment Banking)
Products:
Updated on: 04 May 2021, 22:04
Originally posted by globaldesi on 05 May 2019, 05:55.
Last edited by Sajjad1994 on 04 May 2021, 22:04, edited 4 times in total.
Last edited by Sajjad1994 on 04 May 2021, 22:04, edited 4 times in total.
Updated - Complete topic (904).
Kudos
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Question 1
C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
35%
(medium)
Question Stats:
61% (02:52) correct
39%
(02:46) wrong
based on 530
sessions
History
Date
Time
Result
Not Attempted Yet
Question 2
C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
5%
(low)
Question Stats:
81% (00:56) correct 19%
(01:09) wrong
based on 499
sessions
History
Date
Time
Result
Not Attempted Yet
Question 3
D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
35%
(medium)
Question Stats:
56% (00:51) correct 44%
(00:50) wrong
based on 520
sessions
History
Date
Time
Result
Not Attempted Yet
Question 4
A
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
65%
(hard)
Question Stats:
45% (01:08) correct 55%
(01:16) wrong
based on 496
sessions
History
Date
Time
Result
Not Attempted Yet
Question 5
C
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
25%
(medium)
Question Stats:
71% (01:05) correct 29%
(01:19) wrong
based on 484
sessions
History
Date
Time
Result
Not Attempted Yet
New Project RC Butler 2019 - Practice 2 RC Passages Everyday
Passage # 181, Date : 02-Jul-2019
This post is a part of New Project RC Butler 2019. Click here for Details
Passage # 181, Date : 02-Jul-2019
This post is a part of New Project RC Butler 2019. Click here for Details
The Financial Services Modernization Act of 1999
(FSMA) brought dramatic changes to the American
financial system. Most notably, affiliations are
now permitted between banks, brokerage firms, and
(5) insurers. To some degree, the laws that
constitute the FSMA formally recognize that new
financial products, as well as new
technology-driven ways of delivering these
products, were already blurring the boundaries
(10) between institutions. Nevertheless, the FSMA
represents a serious departure from
Depression-era legislation that had been in place
for years, such as the Banking Act of 1933; this
act prohibited cross marketing of financial
(15) services and generally gave the government a
tight rein on banking practices.
While some are concerned about the financial
stability of the multi-purpose institutions that
will form as a result of the new laws, many have
(20) concerns about issues of privacy. It is now
possible for a bank that is affiliated with an
insurance company or brokerage firm to share data
about its customers with its new partners. This
data may not only be financial, but also could
(25) include medical records, job histories, and other
biographical information that a customer might
reasonably feel is private. Even if this shared
information is not used to directly harm the
customer, a perceived knowledge of his or her
(30) interests could lead to unwelcome marketing
efforts, and further dissemination of the data
through the sale of marketing lists to other
businesses.
Defenders of the FSMA point out that provisions
(35) meant to protect private information are included
in the new laws. These provisions include the
requirement that customers be given the
opportunity to “opt out” of having their
information shared with third parties, the
(40) disclosure of financial affiliations, and a ban
on “pretext calling,” whereby businesses obtain
customer information under false pretenses.
However, many people point to loopholes in these
provisions, and remain skeptical that any
(45) measures can now ensure a level of customer
confidentiality comparable to that which existed
before the FSMA laws took effect.
(FSMA) brought dramatic changes to the American
financial system. Most notably, affiliations are
now permitted between banks, brokerage firms, and
(5) insurers. To some degree, the laws that
constitute the FSMA formally recognize that new
financial products, as well as new
technology-driven ways of delivering these
products, were already blurring the boundaries
(10) between institutions. Nevertheless, the FSMA
represents a serious departure from
Depression-era legislation that had been in place
for years, such as the Banking Act of 1933; this
act prohibited cross marketing of financial
(15) services and generally gave the government a
tight rein on banking practices.
While some are concerned about the financial
stability of the multi-purpose institutions that
will form as a result of the new laws, many have
(20) concerns about issues of privacy. It is now
possible for a bank that is affiliated with an
insurance company or brokerage firm to share data
about its customers with its new partners. This
data may not only be financial, but also could
(25) include medical records, job histories, and other
biographical information that a customer might
reasonably feel is private. Even if this shared
information is not used to directly harm the
customer, a perceived knowledge of his or her
(30) interests could lead to unwelcome marketing
efforts, and further dissemination of the data
through the sale of marketing lists to other
businesses.
Defenders of the FSMA point out that provisions
(35) meant to protect private information are included
in the new laws. These provisions include the
requirement that customers be given the
opportunity to “opt out” of having their
information shared with third parties, the
(40) disclosure of financial affiliations, and a ban
on “pretext calling,” whereby businesses obtain
customer information under false pretenses.
However, many people point to loopholes in these
provisions, and remain skeptical that any
(45) measures can now ensure a level of customer
confidentiality comparable to that which existed
before the FSMA laws took effect.
The primary purpose of the passage is to
A) suggest new ways in which the banking industry can better protect the privacy of its customers
B) criticize the FSMA for infringing on the privacy rights of bank customers
C) discuss a specific concern arising out of the passage of the FSMA
D) detail the ways in which biographical data can be shared among the multi-purpose financial affiliations made possible by the FSMA
E) present a balanced view of the pros and cons of the FSMA
The Banking Act of 1933 was designed to regulate banking activities by
A) limiting the manner in which banks marketed their loans to consumers
B) increasing enforcement of customer privacy laws
C) banning financial institutions from intermingling their marketing efforts
D) guaranteeing loans for small businesses that were badly hurt by the Depression
E) establishing laws that recognized certain banking procedures that were already in practice
The author's attitude toward the Financial Services Modernization Act is best described as
A) uncaring, but thorough
B) adulatory, but clearly biased
C) skeptical, but knowledgeable
D) balanced, though alert to problems
E) analytical, though troubled
According to the passage, the laws that make up the Financial Services Modernization Act
A) legitimize a trend that had already been set in motion
B) fulfill a purpose not unlike that of the Banking Act of 1933
C) supersede privacy laws regarding biographical data on bank customers
D) are viewed with suspicion by most people outside the banking industry
E) contain no measures designed to protect customer confidentiality
A) legitimize a trend that had already been set in motion
B) fulfill a purpose not unlike that of the Banking Act of 1933
C) supersede privacy laws regarding biographical data on bank customers
D) are viewed with suspicion by most people outside the banking industry
E) contain no measures designed to protect customer confidentiality
According to the passage, all of the following statements describe ways in which a customer could be affected by the Financial Services Modernization Act EXCEPT
A) the fact that the customer has high blood pressure is shared by a bank and its affiliated insurance company
B) information regarding the customer’s last occupation is given by a bank to a brokerage house without the customer’s knowledge
C) a call is made to the customer by a local political party that wishes to determine his party affiliation
D) the customer receives sales information through the mail from a business that has bought a profile on the customer’s buying habits
E) the same institution that has handled the customer’s savings now sells him life insurance
23 May 2019, 05:11
Kudos
Bookmarks
All correct in 9 mins 40 seconds, including 4 mins to read
Para 1- FSMA- affiliations are now permitted between banks, brokerage firms, and insurers
Para 2- some concerned about stability, many about privacy
Para 3- Defenders of the FSMA- provisions to protect privacy included
1. The primary purpose of the passage is to
A) suggest new ways in which the banking industry can better protect the privacy of its customers- incorrect, the ways are discussed in the last para and we are not even sure whether this a new way
B) criticize the FSMA for infringing on the privacy rights of bank customers- incorrect,
C) discuss a specific concern arising out of the passage of the FSMA - Correct - the passage is concerned with privacy concern arising out of FSMA
D) detail the ways in which biographical data can be shared among the multi-purpose financial affiliations made possible by the FSMA- incorrect
E) present a balanced view of the pros and cons of the FSMA- incorrect, pros are not even discussed and only an issue of privacy is discussed
Answer C
2. The Banking Act of 1933 was designed to regulate banking activities by
C) banning financial institutions from intermingling their marketing efforts
the Banking Act of 1933; this act prohibited cross marketing of financial services and generally gave the government a tight rein on banking practices.
3. The author's attitude toward the Financial Services Modernization Act is best described as
D) balanced, though alert to problems- Correct - the author is neutral though he believes that privacy concerns can't be just brushed aside
4. According to the passage, the laws that make up the Financial Services Modernization Act
A) legitimize a trend that had already been set in motion
To some degree, the laws that constitute the FSMA formally recognize that new financial products, as well as new technology-driven ways of delivering these products, were already blurring the boundaries between institutions
5. According to the passage, all of the following statements describe ways in which a customer could be affected by the Financial Services Modernization Act EXCEPT
A) the fact that the customer has high blood pressure is shared by a bank and its affiliated insurance company- incorrect; This data may not only be financial, but also could include medical records, job histories, and other biographical information that a customer might reasonably feel is private.
B) information regarding the customer’s last occupation is given by a bank to a brokerage house without the customer’s knowledge- incorrect
C) a call is made to the customer by a local political party that wishes to determine his party affiliation- Correct
D) the customer receives sales information through the mail from a business that has bought a profile on the customer’s buying habits- incorrect
E) the same institution that has handled the customer’s savings now sells him life insurance- incorrect, cross marketing of financial services
Para 1- FSMA- affiliations are now permitted between banks, brokerage firms, and insurers
Para 2- some concerned about stability, many about privacy
Para 3- Defenders of the FSMA- provisions to protect privacy included
1. The primary purpose of the passage is to
A) suggest new ways in which the banking industry can better protect the privacy of its customers- incorrect, the ways are discussed in the last para and we are not even sure whether this a new way
B) criticize the FSMA for infringing on the privacy rights of bank customers- incorrect,
C) discuss a specific concern arising out of the passage of the FSMA - Correct - the passage is concerned with privacy concern arising out of FSMA
D) detail the ways in which biographical data can be shared among the multi-purpose financial affiliations made possible by the FSMA- incorrect
E) present a balanced view of the pros and cons of the FSMA- incorrect, pros are not even discussed and only an issue of privacy is discussed
Answer C
2. The Banking Act of 1933 was designed to regulate banking activities by
C) banning financial institutions from intermingling their marketing efforts
the Banking Act of 1933; this act prohibited cross marketing of financial services and generally gave the government a tight rein on banking practices.
3. The author's attitude toward the Financial Services Modernization Act is best described as
D) balanced, though alert to problems- Correct - the author is neutral though he believes that privacy concerns can't be just brushed aside
4. According to the passage, the laws that make up the Financial Services Modernization Act
A) legitimize a trend that had already been set in motion
To some degree, the laws that constitute the FSMA formally recognize that new financial products, as well as new technology-driven ways of delivering these products, were already blurring the boundaries between institutions
5. According to the passage, all of the following statements describe ways in which a customer could be affected by the Financial Services Modernization Act EXCEPT
A) the fact that the customer has high blood pressure is shared by a bank and its affiliated insurance company- incorrect; This data may not only be financial, but also could include medical records, job histories, and other biographical information that a customer might reasonably feel is private.
B) information regarding the customer’s last occupation is given by a bank to a brokerage house without the customer’s knowledge- incorrect
C) a call is made to the customer by a local political party that wishes to determine his party affiliation- Correct
D) the customer receives sales information through the mail from a business that has bought a profile on the customer’s buying habits- incorrect
E) the same institution that has handled the customer’s savings now sells him life insurance- incorrect, cross marketing of financial services
02 Jul 2019, 07:14
Kudos
Bookmarks
Hi,
Please explain the options of 5th question in detail.
Why is option C correct?
Please explain the options of 5th question in detail.
Why is option C correct?
