​Which of the Following Statements Is CORRECT

question 4

Multiple Choice

​Which of the following statements is CORRECT?

• A) ​In Europe and Asia hedge funds are legal,but they are not permitted to operate in the United States.
• B) ​Hedge funds have more in common with commercial banks than with any other type of financial institution.
• C) ​Hedge funds have more in common with investment banks than with any other type of financial institution.
• D) ​In the United States hedge funds are legal,but in Europe and Asia they are not permitted to operate.
• E) ​The justification for the "light" regulation of hedge funds is that only "sophisticated" investors with high net worths and high incomes are permitted to invest in these funds,and such investors supposedly can do the necessary "due diligence" on their own rather than have it done by the SEC or some other regulator.

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Definitions:

Labour Relations Board

A government agency responsible for overseeing labor laws and resolving disputes between employers and unions.

Management Rights Clause

A section in a labor agreement that defines the rights and responsibilities of management to run and operate the company without interference.

Supreme Rights Clause

A legal provision asserting the primary authority of a nation's constitution or laws over any conflicting laws or agreements.

Defined Rights Clause

A provision in a legal document that specifies the rights granted to parties involved.