Contingent Liabilities Sometimes Pose an Ethical Challenge Because They Are

question 26

True/False

Contingent liabilities sometimes pose an ethical challenge because they are not real liabilities and are easy to overlook.

---

Definitions:

Fiscal Policy

Government policies regarding taxation and spending designed to influence economic conditions, such as growth rates, inflation, and employment.

Monetary Policy

Actions undertaken by a central bank, such as the Federal Reserve, to control the money supply and interest rates to achieve macroeconomic objectives like controlling inflation.

Timing Lags

Delays between the implementation of monetary or fiscal policy and the observable effects of these policies on the economy.

Open Market

A freely competitive market in which any buyer or seller can participate, and prices are determined by supply and demand forces.