​Which of the Following Statements Is CORRECT

question 4

Multiple Choice

​Which of the following statements is CORRECT?

• A) ​In Europe and Asia hedge funds are legal,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) ​In the United States hedge funds are legal,but in Europe and Asia they are not permitted to operate.
• 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:

Coagulation

The process by which blood changes from a liquid to a gel, forming a blood clot.

Insulin Secretion

The process by which the pancreas produces and releases insulin, a hormone that helps regulate blood sugar levels.

Parasympathetic Action

Activities associated with the branch of the autonomic nervous system that conserves energy as it slows the heart rate, increases intestinal and gland activity, and relaxes sphincter muscles.

Increased Metabolism

An elevation in the rate at which the body converts food and drink into energy, involving biochemical processes that maintain life within the cells.