Are New Regulations Likely to Prevent a Future Financial Crisis

question 156

Multiple Choice

Are new regulations likely to prevent a future financial crisis?

• A) Yes, regulatory agencies have been effective at anticipating the secondary effects of new regulations.
• B) Yes, industries that were highly regulated were unaffected by the Crisis of 2008.
• C) No, regulators have a poor record with regard to foreseeing future problems.
• D) No, current regulations could have prevented the Crisis of 2008, but were largely ignored.

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Definitions:

Long-term Memory

The aspect of our memory system that is capable of storing large amounts of information for potentially infinite durations, ranging from a few minutes to decades.

Permanent Memory Storage

The ability of the brain to store information indefinitely, which can be retrieved long after the information was initially encoded.

Self-schema

Self-schema is a cognitive framework comprising beliefs and ideas about oneself that guides the processing of self-relevant information and shapes one’s identity and self-concept.

Procedural Knowledge

Knowledge of how to perform various tasks and activities, typically acquired through practice and experience rather than theoretical understanding.