The Amount of Money Earned by Some American Executives

question 10

Multiple Choice

The amount of money earned by some American executives

• A) was in no way a cause of the financial crisis.
• B) was regulated by the government before the financial crisis.
• C) has played a pivotal role in creating the crisis and in its aftermath.
• D) A and B

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Definitions:

Equity

The value of an ownership interest in a company, represented by the share of assets after all liabilities have been deducted.

Treasury Bills

Short-term government securities issued at a discount from the face value and maturing at par, used as a means for governments to borrow money.

Call Option

In finance, it refers to a pact allowing the acquiring party the opportunity, without being forced, to purchase assets like securities, bonds, or commodities at a price that is determined beforehand, within a certain time limit.