Safe Bank Has an Outside Display Which Has the Time

question 95

Multiple Choice

Safe Bank has an outside display which has the time and temperature that is always correct. This is an example of

• A) an interference in the workings of the price system.
• B) a breakdown in communication between the bank and its customers.
• C) a negative externality.
• D) a positive externality.

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Definitions:

Self-Regulating Organizations

Entities that operate independently to enforce rules and standards within a particular industry or profession without direct government oversight.

Securities Regulation

The set of laws and regulations governing how securities are issued, bought, sold, and traded, primarily aimed at protecting investors.

Securitization

The financial practice of pooling various types of contractual debt such as mortgages and selling their related cash flows to third-party investors as securities.

Newly Created Securities

Financial instruments such as stocks or bonds that have been recently issued and are available for investment.