Which of the Following Statements Is True of the Securities

question 45

Multiple Choice

Which of the following statements is true of the Securities Enforcement Remedies Act?

• A) An individual found to have violated the securities laws may be prohibited by the court from serving as an officer or director of a business organization.
• B) Civil fines of up to $700,000 per organization and $500,000 per individual may be imposed and collected by the courts.
• C) It changes membership requirements of corporate audit committees.
• D) It requires proof of criminal violation for individual and organizational fines to be imposed.
• E) It refrains from imposing liability on a theory of fraud on any person who shall make or cause to be made any false or misleading statements.

---

Definitions:

Crowding Out

A situation in which increased public sector borrowing leads to a reduction in private sector spending, either because of higher interest rates or because available financial resources are used by the government.

Governmental Purchases

Expenditures made by the government for goods and services that are used to provide public services.

Domestic Output

The total value of all goods and services produced within a country's borders in a given time period.

Transfer Payments

Payments made by governments to individuals or other entities without requiring a good or service in return, such as welfare or social security payments.