The 2010 Passage of the Dodd-Frank Act Proposed Additional Monetary

question 16

Multiple Choice

The 2010 passage of the Dodd-Frank Act proposed additional monetary incentives for whistle-blowers.A primary concern about these new incentives is

• A)they will encourage too many employees to attempt to blow the whistle on firms,even those that have done nothing wrong.
• B)people do not generally respond at all to monetary incentives.
• C)whistle-blowers might be tempted to report to the SEC with their reports and not report the misconduct to the company's internal compliance program.
• D)people may exaggerate their claims in order to get a reward.
• E)the funds paid out to whistle-blower might bankrupt companies.

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Definitions:

Automatic Stabilizers

Financial policies and schemes intended to balance out variations in a country's economic performance, avoiding extra government or policymaker involvement.

Legislative Action

The process by which laws are created, amended, or repealed within a legislative body such as a parliament or congress.

Macroeconomic Activity

The total economic activities and interactions at a national or global level, including production, consumption, saving, and investment.

Nondiscretionary Fiscal Policy

Government policies related to taxation and spending that automatically adjust without the need for explicit action by policy makers.