Which of the following describes regulatory arbitrage?
A. Finding a way of reducing capital requirements without changing the risks being taken
B. Buying products that are not subject to regulation
C. Shorting products that are not subject to regulation
D. Trading with the government
A
Regulatory arbitrage involves organizing trading and accounting so that regulatory capital is reduced without the risks being taken changing.
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On January 1, 2016, Donna Company leased equipment by signing a five-year lease that required five payments of $30,000 due on December 31 of each year. The equipment remains the property of the lessor at the end of the lease, and Donna does not guarantee any residual value. Using a rate of 8%, Donna capitalized the lease on January 1, 2016, in the amount of $119,781. What is the amount of interest expense Donna should report on its 2017 income statement?
A. $9,582 B. $7,949 C. $20,418 D. $22,051
The particular way materials move will depend upon:
A) types of markets served. B) the channels of distribution the firm is using. C) characteristics of the product. D) all of the above E) none of the above
Factors that affect the cost of homeowners insurance include which of the following? I. Construction material II. Deductible amount
A) I only B) II only C) both I and II D) neither I nor II
An appellate court has the authority to order a new trial
Indicate whether the statement is true or false