Why Was the Interstate Commerce Commission Ineffective

question 35

Multiple Choice

Why was the Interstate Commerce Commission ineffective?

• A) Its rate-setting policies were usually voided by the Supreme Court.
• B) The five-member commission appointed by the president was corrupt.
• C) The Department of Interior blocked its regulatory efforts.
• D) Its efforts were opposed by President Grover Cleveland.

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Definitions:

All Equity

A financial structure where a company is financed entirely through equity without any debt financing.

Leverage

The use of various financial instruments or borrowed capital to increase the potential return of an investment.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed annually, affecting loans, mortgages, and savings.

Unlevered Cost

The cost of an investment that does not take into account the effect of debt in the capital structure.