Which of the Following Statements Is CORRECT

question 11

Multiple Choice

Which of the following statements is CORRECT?

• A) Hedge funds are legal in Europe and Asia, but they are not permitted to operate in the United States.
• B) Hedge funds have more in common with commercial banks than with any other type of financial institution.
• C) Hedge funds have more in common with investment banks than with any other type of financial institution.
• D) Hedge funds are legal in the United States, but they are not permitted to operate in Europe or Asia.
• E) The justification for the "light" regulation of hedge funds is that only "sophisticated" investors with high net worths and high incomes are permitted to invest in these funds, and such investors supposedly can do the necessary "due diligence" on their own rather than have it done by the SEC or some other regulator.

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Definitions:

Debit And Credit Cards

Payment cards where debit cards draw directly from the user's bank account, while credit cards offer a line of credit from the issuing institution.

Purchases

Transactions where goods or services are acquired in exchange for money or other forms of payment.

Aeon

An immeasurably long period of time, often used in the context of cosmic or geological epochs.

Carrefour

Carrefour is a multinational retailer headquartered in France, known for being one of the largest hypermarket chains in the world, offering a wide range of food and non-food products.