A. leads to the SEC's preference to allow exchanges to self-regulate.

suggests that expenditure is the key to governing the level of business activity.

suggests that monetary supply is the key to governing the level of business activity.

is the notion that investment companies should not be taxed at the corporate level.

Correct answer: D

"A" is a guess; "B" and "C" are broader economic theories.

  1. Which of the following statements is least accurate with respect to the various ...

    The correct answer is: b) The tax preference theory simply argues that capital gain return results in a higher after tax ... Read Answer >>
  2. Which of the following BEST describes a wash sale?

    A. Buying and selling the same security simultaneously B. Buying stock while selling the equivalent convertible bondsC. Exercising ... Read Answer >>
  3. A Straddle

    A. Speculates on the rate of change of a security's market price. B. Speculates on the rate of change of an option's market ... Read Answer >>
  4. What's the difference between agency theory and stakeholder theory?

    Learn how agency theory and stakeholder theory are used in business to understand common business communication problems ... Read Answer >>
  5. What is the difference between notional value and market value?

    Learn more about the notional and market value, how to calculate the notional value of a futures contract and the difference ... Read Answer >>
  6. Compute the offering price for a mutual fund with NAV of $1,200,000,000, an 8% front-end ...

    A. $1,304.35B. $1,200.00C. $1,196.35D. $1,296.00 Correct answer: A"B" is the bid price, not the offering price; "C" ... Read Answer >>
Related Articles
  1. Investing

    7 Controversial Investing Theories

    We take a closer look at the theories that attempt to explain and influence the market.
  2. Small Business

    Governance Pays

    Learn about how the way a company keeps its management in check can affect the bottom line.
  3. Trading

    Understanding Notional Value

    This term is commonly used in the options, futures and currency markets because a very small amount of invested money can control a large position.
  4. Small Business

    Government Regulations: Do They Help Businesses?

    These rules are in place to protect consumers and help businesses thrive at the same time.
  5. Investing

    Modern Portfolio Theory vs. Behavioral Finance

    Modern portfolio theory and behavioral finance represent differing schools of thought that attempt to explain investor behavior. Perhaps the easiest way to think about their arguments and positions ...
  6. Insights

    A Look At Fiscal And Monetary Policy

    There's a debate over which policy is better for the economy. Find out which side of the fence you're on.
  7. Investing

    What are Government Securities?

    Government securities are debt instruments that governments issue to raise capital.
  8. Taxes

    Explaining Corporate Tax

    A corporate tax is a tax levied on the profits a corporation generates.
  1. Pipeline Theory

    A notion that an investment firm that passes all capital gains, ...
  2. Monetary Theory

    A set of ideas about how monetary policy should be conducted ...
  3. Biased Expectations Theory

    A theory that the future value of interest rates is equal to ...
  4. Accelerator Theory

    An economic theory that suggests that as demand or income increases ...
  5. Conduit Theory

    A theory stating that an investment firm that passes all capital ...
  6. C Corporation

    A legal structure that businesses can choose to organize themselves ...
Hot Definitions
  1. Buyback

    The repurchase of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies ...
  2. Nest Egg

    A substantial sum of money that has been saved or invested for a specific purpose. A nest egg is generally earmarked for ...
  3. Denial Of Service Attack (DoS)

    An intentional cyberattack carried out on networks, websites and online resources in order to restrict access to its legitimate ...
  4. Perkins Loan

    A loan program that provides low-interest student loans to undergraduate and graduate students who demonstrate exceptional ...
  5. Wealth Management

    A high-level professional service that combines financial/investment advice, accounting/tax services, retirement planning ...
  6. Assets Under Management - AUM

    The market value of assets that an investment company manages on behalf of investors. Assets under management (AUM) is looked ...
Trading Center