The Customer Identification Program (CIP)implemented by the USA Patriot Act

question 127

Multiple Choice

The customer identification program (CIP) implemented by the USA Patriot Act requires banks to

• A) verify identities
• B) keep records of customer activities
• C) compare identities of new customers with government terrorist lists
• D) all of the above

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Definitions:

Minimum Efficient Scale

The smallest level of production at which long-term average total costs are minimized.

Natural-Monopoly Situation

A market condition in which a single firm can produce output at a lower cost than can multiple firms, leading to a monopoly justified by efficiencies of scale.

Implicit Costs

The opportunity costs that arise from using resources that a business already owns rather than earning revenue from those resources elsewhere.

Explicit Costs

Direct, out-of-pocket expenses incurred in conducting a business activity, such as wages, rent, and materials.