The Financial Stability Oversight Council Was Created in Response to a Financial

question 18

Multiple Choice

The Financial Stability Oversight Council was created in response to a financial crisis to

• A)identify and respond to emerging risks in the financial system.
• B)protect consumers from abusive practices by financial institutions.
• C)issue rules to cover almost every aspect of a business's operation.
• D)reduce the number and authority of business financial regulations.

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Definitions:

Voting Stock

Shares of a company that grant the holder the right to vote on company matters, such as electing the board of directors.

Equity Method

An accounting technique used when a company invests in another company and exercises significant influence over it, adjusting the value of the investment based on the investee's performance.

Cash Dividend

The disbursement of cash from a company's earnings to its shareholders, a decision made by the board of directors for a specific class of its investors.

Voting Common Stock

A class of stock that grants the shareholder voting rights in a corporation's decisions, typically one vote per share owned.