All of the Following Are New Rules Affecting the Shadow

question 70

Multiple Choice

All of the following are new rules affecting the shadow banking system as a result of the Dodd-Frank Act EXCEPT

• A) some trading of derivatives are required to take place on exchanges.
• B) large hedge funds are required to register with the SEC.
• C) firms selling mortgage-backed securities and similar assets are required to hold 5% of the credit risk.
• D) securitized loans must now be insured.

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Definitions:

Management Emphasis

The focus or priority that management places on certain areas, goals, or practices within an organization.

Professional Bureaucracy

An organizational structure characterized by a high degree of specialization and professional autonomy, often found in institutions like hospitals and universities.

Machine Bureaucracy

A highly structured form of organization characterized by a high degree of formalization and standardization, making operations predictable and efficient.

Central Management Direction

highlights a leadership approach where central figures or bodies within an organization dictate policies and strategies, streamlining decision-making processes.