"Regulatory Capture" Refers to the Situation Where a Government Agency

question 259

Multiple Choice

"Regulatory capture" refers to the situation where a government agency charged with supervising and regulating a particular industry is

• A)strongly influenced by the firms in the very industry that it is regulating.
• B)headed by bureaucrats who have a "lock" on their positions, without any rivals.
• C)completely dominating and controlling the actions of firms in the industry.
• D)headed by unelected government officials who have no strong desire to regulate.

---

Definitions:

Annual Perpetuity

A type of financial annuity that makes consistent annual payments to the holder indefinitely.

Interest Rate

The percentage paid by a borrower to a lender for the privilege of borrowing money, often annually, or the yield earned on investment funds.

Cash Flow Streams

Multiple inflows and outflows of cash, associated with investments or business operations, over a period.

Future Value

The value of an investment at a specific future date, including interest or dividends.