Government Intervention Can Be Self-Defeating Because It Tends to Protect

question 2

True/False

Government intervention can be self-defeating because it tends to protect the inefficient rather than help firms become efficient global competitors.

---

Definitions:

Collateral

An asset that a borrower offers a lender to secure a loan. If the borrower fails to repay the loan, the lender may seize the collateral.

Oral Agreement

A verbal contract in which the terms have been agreed upon through spoken communication, as opposed to written, but is still legally binding in some cases.

Perfection

In legal finance, the process of securing an interest in collateral, ensuring a lender's rights are prioritized over others in the event of borrower default.

Attachment

The legal process of seizing a defendant's property to ensure satisfaction of a judgment.