Which of the Following Statements Is True About the Disadvantages

question 3

Multiple Choice

Which of the following statements is true about the disadvantages of federalism?

• A)Federalism does not protect citizens from tyranny.
• B)Federalism limits opportunities for future national leaders.
• C)Federalism discourages experimentation.
• D)Federalism promotes variation in policies that creates inefficiencies and inequalities.
• E)Federalism widens the gap between the government and the people.

---

Definitions:

Arbitrage Opportunity

A situation where a trader can profit from differences in price of the same or similar financial instruments on different markets or in different forms.

Risk-free Rate

The theoretical rate of return of an investment with no risk of financial loss, often represented by government bonds.

Diversified Portfolios

Investment portfolios constructed to spread risk across various asset classes or sectors to reduce volatility.

Systematic Factors

External influences that affect all companies in the market to some extent, such as economic, political, and social changes.