(I)When a Country's Institutions and Policies Provide Secure Property Rights,a

question 37

Multiple Choice

(I) When a country's institutions and policies provide secure property rights,a fair and balanced judicial system,monetary stability,and effective limits on government's ability to transfer wealth through taxation and regulation,creative individuals are more likely to engage in product development,investment,and other productive activities.
(II) When a country's legal and regulatory environment fails to protect property rights and is often used to favor some at the expense of others,individuals are instead more likely to engage in attempts to manipulate the political and legal process in order to plunder wealth from others.

• A)I is true,II is false.
• B)I is false,II is true.
• C)Both I and II are true.
• D)Both I and II are false.

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Definitions:

SEC

The U.S. Securities and Exchange Commission, a federal agency tasked with protecting investors, maintaining fair and orderly functioning of the securities markets, and facilitating capital formation.

Initial Public Offerings

Initial public offerings (IPOs) refer to the process by which a private company becomes publicly traded by offering its shares to the public for the first time.

Secondary Market

A market where investors buy and sell securities they already own, as opposed to the primary market where securities are first issued.

Institutions

Organizations or structures that are established for a particular purpose, often involved in public service, finance, or education.