Which of the Following Provisions of Legislation to Deal with Conflicts

question 85

Multiple Choice

Which of the following provisions of legislation to deal with conflicts of interest does not increase the flow of information in financial markets?

• A)requiring a firm's chief officers to certify its financial statements and other disclosures
• B)requiring investment banks to make their analysts' recommendations public
• C)requiring disclosure of off-balance-sheet transactions
• D)increasing resources available to the Securities and Exchange Commission to supervise financial markets

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Definitions:

Prisoner's Dilemma

A fundamental problem in game theory demonstrating that two people might not cooperate even if it is in both their best interests to do so.

Nash Equilibrium

An idea in game theory where a player cannot benefit by altering their strategy alone while the strategies of other players stay the same.

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies if the other players keep theirs unchanged.

Simultaneous Pricing Game

A strategic interaction in economics where multiple firms set their prices at the same time, taking into consideration the potential reactions of competitors.