The Sarbanes-Oxley Act of 2002 Represented

question 3

Multiple Choice

The Sarbanes-Oxley Act of 2002 represented

• A) deregulation of the financial services industry.
• B) increased oversight over corporate financial reporting.
• C) telecommunications deregulation.
• D) a proposed national ban on cellular phone use while operating a motor vehicle.

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Definitions:

Municipal Bonds

Tax-exempt bonds issued by state and local governments. General obligation bonds are backed by the general taxing power of the issuer. Revenue bonds are backed by the proceeds from the project or agency they are issued to finance.

Debt Obligation

A commitment to repay borrowed money, typically in the form of loans or bonds, with specific terms and interest rates.

Treasury Inflation-Protected Securities (TIPS)

Government bonds whose principal value is adjusted based on changes in the inflation rate, protecting investors from inflation.