Extensive Government Restrictions on the Use of Capital Are Likely

question 38

Multiple Choice

Extensive government restrictions on the use of capital are likely to

• A) create dead capital.
• B) enhance economic growth.
• C) enhance economic freedom.
• D) result in capital resources being devoted to their most efficient uses.

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Definitions:

Portfolio Construction

The process of selecting the appropriate mix of investments and allocating assets among those investments to achieve specific investment goals.

Secondary Market

A market where investors buy and sell securities or assets from other investors, rather than from the issuing company directly.

Previously Issued

Refers to securities or stocks that have been issued in the past and are currently being traded in secondary markets.

Mortgage Pass-Through Securities

Investment products that pool mortgage loans and pass the principal and interest payments from borrowers to investors periodically.