Which of the Following Describes Regulatory Arbitrage

question 6

Multiple Choice

Which of the following describes regulatory arbitrage?

• A) Finding a way of reducing capital requirements without changing the risks being taken
• B) Buying products that are not subject to regulation
• C) Shorting products that are not subject to regulation
• D) Trading with the government

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Definitions:

Federal Government

The national government of a federated state, which holds the authority to govern based on a division of powers between national and subnational governments.

Consolidated Omnibus Budget Reconciliation Act

A federal law in the United States that, among other things, provides individuals and their families the option to continue healthcare coverage when it would otherwise be lost due to certain life events.

Emergency Medical Treatment

The immediate assessment and intervention provided to individuals with acute illness or injury, typically delivered by first responders, emergency medical technicians, or hospital emergency departments.

Active Labor Act

Known as the Emergency Medical Treatment and Active Labor Act (EMTALA), a U.S. federal law that mandates emergency healthcare services to be provided irrespective of the patient's ability to pay.