Of the Following, Which Is the Most Recent Example of Legislation

question 98

Multiple Choice

Of the following, which is the most recent example of legislation passed by the federal government to deal with a major economic or highly visible corporate event?

• A) The Federal Deposit Insurance Corporation Improvement Act
• B) The Securities and Exchange Act
• C) The Sarbanes-Oxley Act
• D) The Securities Act

---

Definitions:

Liquidity Trap

A situation where low interest rates fail to increase lending and economic growth due to people preferring to hold onto cash.

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period, typically showing a downward slope from left to right.

Supply of Money

The total value of money available in an economy at a specific time, including cash, coins, and balances in bank accounts.

Tight Monetary Policy

A monetary policy strategy used by central banks to decrease the money supply and increase interest rates to control inflation and stabilize the currency.