Ch 10

1. Financial assets such as stocks, bonds, mutual funds, and derivatives can best be described
as?

Claims on a set of cash flows

2. The city of ________________ is known as the birthplace of the first modern stock exchange,
pioneering short selling, debt-equity swaps and option trading

Amsterdam

3. Financial markets are NOT designed to facilitate which of the following activities?

Development of important regulations

4. Which two international leaders were known as the great believers in open and free financial
markets?

Margaret Thatcher and Ronald Regan