Question

QUESTION 14

1. Which of the following describes the Financial Services Modernization Act?

   	A.	Allows banks to offer insurance and stock brokerage services.
   	B.	Requires banks to disclose their privacy policies to consumers.
   	C.	Requires banks to inform consumers how they can “opt out” of having their confidential information released to other companies.
   	D.	Requires banks to develop policies that will prevent unauthorized access of customers’ confidential information.
   	E.	All of these.

Answer 1

The Answer is E. ALL OF THE ABOVE​​​​​​​

1. ​​​​​​​As per the Financial Services Modernization Act of 1999, The Banks Should offer the insurance and stock brokerage services and business with insurance companies, brokerage firms, investment dealers and the commercial banks
2. All Banks should disclose their privacy policies to their consumers. This is the most important one in the act, that serves to partially deregulate the financial industry.
3. All banks should inform their consumers how they can 'OPT OUT' of having their important confidential info released to the other companies. Consumers would be given a chance to opt out of allowing such info to be shared with the outside parties.
4. Every Bank should have some policies that will prevent unautherized access to the info of the customers.

Hence, all the options are correct here.