Which of the Following Statements Is True of Crony Capitalism

question 52

Multiple Choice

Which of the following statements is true of crony capitalism?

• A) In this system, there is a close relationship between business people and the public.
• B) In this system, the government gives preferential treatment to the common public.
• C) In this system, the government taxes wealthy people and large corporations excessively.
• D) In this system, the government gives direct payment or loans to wealthy people and large corporations.
• E) In this system, the government provides wealthy people and large corporations with grants that require extreme competition in an open market.

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Definitions:

Debit Cards

Plastic cards issued by banks that allow cardholders to transfer money electronically from their bank account when making a purchase.

Grace Period

A set period of time after the due date during which payment can be made without penalty.

M2

A money aggregate consisting of M1 plus savings deposits, small-denomination time deposits, money market mutual funds, and other miscellaneous near-monies.

Near-Monies

Assets that are easily convertible into cash but are not cash themselves, such as savings accounts and time deposits.