Which of the Following Statements Is Incorrect with Respect to the Structure

question 65

Multiple Choice

Which of the following statements is incorrect with respect to the structure of the SEC?

• A)It is composed of seven commissioners appointed by the president of the United States.
• B)The president selects one commissioner to chair the commission.
• C)Each commissioner serves a five-year term.
• D)Commissioners' terms are staggered.
• E)Commissioners meet to assess whether existing regulations are successfully preventing abuses and to revise the regulations as needed.

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Definitions:

Oil Production

The extraction of crude oil from the earth, which is later refined and used in the production of various energy products and other materials.

Opportunity Cost

The sacrifice of potential gains that could have been obtained from unchosen options.

Cost of Capital

The required return necessary to make a capital budgeting project, such as building a new factory, worthwhile.

Beta Coefficient

Amount of systematic risk present in a particular risky asset relative to an average risky asset.