Which of the following is FALSE with respect to regulation?
A) Regulated firms commonly try to avoid the effects of regulation whenever they can.
B) Firms engage in creative responses which conform to the letter of the law but undermine its spirit.
C) Regulation has resulted in state laws that have made creative response illegal in many states.
D) Recent regulations have generated feedback effects that undermined the key aim of the rules.
C
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The additional benefit incurred when undertaking an activity is the ________ benefit
A) total B) gross C) marginal D) explicit
Use the following balance sheet for the First Federal Bank to answer the next question.AssetsLiabilities + Net WorthReserves$100,000Checkable deposits$300,000Loans140,000Stock shares200,000Securities60,000 Property200,000 If the reserve requirement is 20%, this bank can safely expand its loans by a maximum of
A. $20,000. B. $100,000. C. $200,000. D. $40,000.
If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices. B. lower level of output and prices. C. higher level of output and prices. D. lower level of output at higher prices.
With a nominal interest rate of 5%, the present discounted value of $100 to be received in one year is
A) $90.91. B) $95.23. C) $181.82. D) $190.00. E) $220.00.