What is the Glass Steagall Act and why was it passed? Select all sentences that contain true facts about it.*2 pointsThe act was passed to separate commercial and investment banks.The act was passed to separate pension funds and hedge funds.It was repealed in 1999.It was passed in 1929.It was passed to prevent commercial banks from making risky investments with their customers' deposits.The regulators' goal was to safeguard the accounts of ordinary people.

The Glass-Steagall Act was a law passed in 1933, during the Great Depression, in response to major bank failures. The Act was designed to prevent such failures from happening again by separating commercial and investment banking activities.

1. "The act was passed to separate commercial and investment banks." - This is true. The Glass-Steagall Act prohibited commercial banks from participating in investment banking activities, and vice versa.

2. "The act was passed to separate pension funds and hedge funds." - This is false. The Act was not concerned with the separation of pension funds and hedge funds.

3. "It was repealed in 1999." - This is true. The Gramm-Leach-Bliley Act of 1999 effectively repealed the Glass-Steagall Act, allowing commercial and investment banks to consolidate.

4. "It was passed in 1929." - This is false. The Glass-Steagall Act was passed in 1933, not 1929.

5. "It was passed to prevent commercial banks from making risky investments with their customers' deposits." - This is true. One of the main purposes of the Act was to protect bank customers' deposits from being used for risky investments.

6. "The regulators' goal was to safeguard the accounts of ordinary people." - This is true. The Act was designed to protect the savings and checking accounts of ordinary people from risky banking activities.