Why Is It That Some Tasks Are Handled by Independent

question 81

Multiple Choice

Why is it that some tasks are handled by independent agencies even when they might conceivably fall under the scope of an executive department?

• A) Congress may create an independent agency because presidents have less control over them than executive agencies.
• B) Congress prefers independent agencies to executive departments because they have more control over the people who run them.
• C) Independent agencies usually have more policy experts than executive departments.
• D) Congress does not recognize the potential policy overlap between the independent agency and the executive department until after they have established it.
• E) Independent agencies receive more federal funds to carry out their programs.

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Definitions:

Multifactor Model

A financial model that evaluates securities by considering multiple economic and financial factors to explain market phenomena and/or rates of return.

Expected Return

The mean value of the probability distribution of possible returns from an investment or portfolio.

Expected Return-Beta Relationship

A concept in finance that describes the relationship between the risk of an investment and its expected return, based on the beta coefficient.

APT

The Arbitrage Pricing Theory, a model that determines the required return on an asset by considering various macroeconomic factors.