Which of the Following Represents Potential Ethical Challenges Associated with Prediction

question 2

Multiple Choice

Which of the following represents potential ethical challenges associated with prediction markets?

• A) Artificial inflation of product prices
• B) Money-laundering
• C) High-interest financing
• D) Confiscation by government agencies
• E) An insider trading information

---

Definitions:

Annuity A

Represents a financial product that promises to pay the holder a fixed stream of payments over a specified period of time.

APR

Annual Percentage Rate, a measure used to calculate the cost of borrowing, including interest and other fees, shown as a yearly rate.

EAR

Ear is the acronym for Effective Annual Rate, which measures the real return on an investment or the real interest rate on a loan, accounting for compounding over a specified period.

Monthly Stream

A monthly stream often refers to consistent or recurring flows of income, payments, or data that occur every month.