Which of the Following Is Not a Reasonable Argument for the Increase

question 40

Multiple Choice

Which of the following is not a reasonable argument for the increase in the number of banks that can compete in security underwriting activities?

• A)Small firms gain increased access to the capital markets.
• B)Lower commission and fee expense for firms issuing securities.
• C)Issuing firms realize an increase in the degree of underpricing of new issues.
• D)The market for securities underwriting will see a decline in market concentration.
• E)More competition will increase the new issue proceeds to the issuing firm.

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Definitions:

Immediate Reward

A benefit received directly following a certain action or behavior, which can reinforce the behavior and encourage its repetition.

Intrinsic Motivation

Intrinsic motivation is the drive to act for the enjoyment or satisfaction derived from the activity itself, rather than external rewards.

Extrinsic Motivation

A form of motivation driven by external rewards or pressures, rather than internal desires or satisfaction.

Homeostasis

The process by which biological systems maintain a stable internal environment despite changes in external conditions.