The Financial Stability Oversight Board Created by the Restoring American

question 61

Multiple Choice

The Financial Stability Oversight Board created by the Restoring American Financial Stability Act of 2010 has the power to:

• A) break up companies deemed to pose a threat to the nation's financial markets even if the company is not insolvent.
• B) compel the SEC to assume an oversight position over institutions that pose a global risk to financial markets.
• C) approve or disapprove executive compensation packages, including bonuses, regarding companies deemed "too big to fail".
• D) criminally prosecute officers and board members of companies found to have committed fraud and who have harmed the public or the national economy

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Definitions:

Criminal

An individual who has committed a crime or unlawful act as defined by the legal system.

Police Officers

Individuals authorized to maintain public order, enforce laws, and prevent, detect, and investigate crimes.

Just-world Phenomenon

The cognitive bias to believe that the world is inherently fair, leading people to rationalize injustice as deserved by the victim.

Deindividuation

A psychological state where an individual loses self-awareness and self-restraint, often occurring within group settings that foster anonymity.