1. Identify the Congressional Act that repealed the restriction on banks affiliating with securities firms and explain the implications of the Act.  

2. Explain the implications of the Congressional Act that separated commercial banking, investment banking and insurance into three separate industries. Be sure to identify the Act itself.

3. An actively traded corporate bond will likely (a) have a large bid-ask spread. (b) be rated lower by Moody's. (c) pose a large risk for the dealer. (d) have a lower yield-to-maturity than a less liquid bond. (e) have a lower coupon rate.