Which of the Below Statements Is TRUE

question 30

Multiple Choice

Which of the below statements is TRUE?

• A) Because of differences in culture and history, different countries regulate financial markets and financial institutions in varying ways, emphasizing some forms of regulation more than others.
• B) The standard explanation or justification for governmental regulation of a market is that the market, left to itself, will produce its particular goods or services in an efficient manner and at the lowest possible cost.
• C) Governments in most developed economies have created elaborate systems of regulation for financial markets, in part because the markets themselves are simple and in part because financial markets are unimportant to the general economies in which they operate.
• D) Financial activity regulation are free of rules about traders of securities and trading on financial markets.

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Definitions:

Domestic Corporation

A company that is registered, established, and operates within the legal jurisdiction of its home country.

Vertical Restraint

Restrictions in agreements between firms at different levels in the production or distribution chain, often related to conditions of sale or purchase prices.

Per Se Illegal

Actions or practices that are automatically considered illegal without the need for further examination of their effects on competition.

Treble Damages

A legal remedy that allows for triple the amount of actual damages to be awarded to a plaintiff in certain cases, often involving willful violations of the law.