The Purpose of the U

question 47

Multiple Choice

The purpose of the U.S. Financial Services Oversight Council, which was created by the Dodd-Frank Act, is to:

• A)replace the existing U.S. regulatory agencies with one agency to enforce all financial regulations.
• B)oversee U.S. private credit rating agencies.
• C)determine appropriate levels of executive compensation for firms in the U.S. financial system.
• D)coordinate activities of the various U.S. regulatory agencies.

---

Definitions:

Prices

The amount of money expected, required, or given in payment for something, reflecting the value of goods or services in monetary terms.

Rational Expectations

An economic theory that posits individuals make decisions based on their expectations for the future, which are in turn based on past trends and information considered to be most relevant.

Discretionary Fiscal Policies

Economic policies based on government spending and taxation that are undertaken intentionally by a government to influence its economy.

Aggregate Demand

The collective need for all products and services in an economy at a specific overall price level during a certain timeframe.