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Why was the Gramm-Leach-Bliley Act enacted?

To facilitate digital communication

To manage consumer credit scores

To control financial institutions' handling of private information

The Gramm-Leach-Bliley Act (GLBA) was enacted primarily to control financial institutions' handling of private information. This legislation aimed to enhance consumer protection by imposing certain privacy rules on financial institutions, requiring them to disclose their information-sharing practices and give consumers the right to opt-out of having their personal data shared with non-affiliated third parties.

The act was a response to growing concerns about the protection of personal financial data, particularly in an era where mergers among financial entities were becoming more common. By mandating transparency and consumer rights regarding information privacy, GLBA established a foundational framework for how banks, securities firms, and insurance companies treat sensitive customer information.

In contrast, the other options do not accurately align with the primary focus of the Gramm-Leach-Bliley Act. While facilitating digital communication, managing consumer credit scores, and regulating insurance markets are important topics in their respective areas, they are not the central purpose of this specific legislation.

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To regulate insurance markets

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