To Prevent Conflicts of Interest and Covert Compensation Schemes, the Sarbanes-Oxley

question 41

True/False

To prevent conflicts of interest and covert compensation schemes, the Sarbanes-Oxley Act prohibits all loans either directly or indirectly to directors and executive officers by their corporations.

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Definitions:

Supply-siders

Economists who believe reducing barriers for people to produce (supply) goods and services, like lower taxes, will stimulate economic growth.

Curing Recessions

Efforts and policies aimed at stimulating economic recovery and ending periods of economic decline.

Keynesian Economics

As formulated by John Maynard Keynes, this school believed the private economy was inherently unstable and that government intervention was necessary to prevent recessions from becoming depressions.

Crude Quantity Theory

A theoretical framework suggesting that changes in money supply have a direct, proportional effect on the price level in an economy.