CFA Practice Question

There are 253 practice questions for this study session.

CFA Practice Question

In his new book, "The Fine Print: How Big Companies Use 'Plain English' to Rob You Blind", David Cay Johnston highlights one of the key problems in the U.S. "The telecos got the rules changed while we weren't watching. Basically, the phone and cable companies lobbied Washington to change laws and regulations to favor their businesses over their customers." According to Johnston, this is a typical example of:
A. regulatory capture.
B. regulatory competition.
C. regulatory arbitrage.
Explanation: Regulatory capture is the process by which regulatory agencies eventually come to be dominated by the very industries they were charged with regulating. Regulatory capture happens when a regulatory agency, formed to act in the public's interest, eventually acts in ways that benefit the industry it is supposed to be regulating, rather than the public.

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