Which of the Following Is a Remedy or Penalty That

question 23

Multiple Choice

Which of the following is a remedy or penalty that may be imposed for a breach of the National Credit Code?

• A)A civil penalty of up to $500 000 for each breach - if the application is made by a credit provider or ASIC.
• B)The withdrawal of a credit provider's licence for up to five years.
• C)A requirement to apologise and offer compensation through public advertisements.
• D)A criminal penalty of up to $1.1 million for each breach.

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Definitions:

Market Equilibrium

The state in which the supply and demand for a good or service are balanced, leading to a stable price.

Consumer Surplus

The variance between the total price consumers are ready and able to fork over for a good or service and the sum they ultimately pay.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Consumer Surplus

The difference between the total amount that consumers are willing to pay for a good or service and the total amount they actually do pay.