Which of the Following Is Not One of the Reasons

question 33

Multiple Choice

Which of the following is not one of the reasons that Prohibition failed?

• A) Organized crime provided a ready supply of liquor.
• B) It proved impossible to enforce rules of behavior with which a significant portion of the population disagreed.
• C) The Volstead Act was underfunded.
• D) New pharmaceutical discoveries cured the problem of alcohol abuse in a simpler way.
• E) Prohibition laws were weakly enforced.

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Definitions:

Investment

The allocation of resources (such as capital or time) with the expectation of receiving future returns.

Fair Value

The price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Unrealized Profits

Profits that have occurred on paper due to an asset's increased value but have not yet been cashed in by selling the asset.

Realized Profits

Refers to the gains earned and received from the sale of assets or investments, distinguished from those merely existing on paper.