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Financial firms

If you deposit $20,000 in a savings account at a bank, you

might earn 1 percent interest per year. Someone who

borrows $20,000 from a bank to buy a new car might

have to pay an interest rate of 6 percent per year on the

loan. Knowing this, why don’t you just lend your money

directly to the car buyer and cut out the bank?

Q443: What is the Sarbanes-Oxley Act? Why was it passed?

What was the source of the problems encountered

by many financial firms during the crisis of 2007–2009?

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