In Order to Limit the Use of a Shell Company

question 82

Multiple Choice

In order to limit the use of a shell company, the SEC has proposed:

• A) Greater financial disclosures.
• B) Eliminating this type of company.
• C) Arresting promoters of shell companies for fraud.
• D) That its share only be sold in foreign countries.

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Definitions:

Gold Standard

A monetary system where a country's currency or paper money has a value directly linked to gold.

Managed Float

A currency exchange rate policy where a currency's value is allowed to fluctuate in response to foreign exchange market mechanisms, but the central bank may intervene to stabilize the currency if necessary.

Managed Floating

An exchange rate system where a country's currency value is allowed to fluctuate in response to foreign-exchange market mechanisms, but the central bank can intervene to prevent extreme fluctuations.