The Fed, with the approval of the Financial Stability Oversight Council, has the power to break up large firms and require such firms to increase their reserves against future losses.

Question

Quizplus · Accepted Answer

This statement is true. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 gave the Financial Stability Oversight Council and the Federal Reserve the power to regulate and monitor financial institutions deemed "too big to fail" and take action to prevent future economic crises. This includes the ability to break up large firms and require them to hold more reserves to prepare for potential losses.

The Fed, with the Approval of the Financial Stability Oversight