Exam 1: Introduction

The proposal by the U.S. Department of the Treasury, popularly referred to as the "Blueprint for Regulatory Reform" or simply Blueprint, would replace the prevailing complex array of regulators with a regulatory system based on functions. More specifically, there would be three regulators. Which of the below is NOT one of these?

Blueprint regulation is the form of regulation that requires issuers of securities to make public a large amount of financial information to actual and potential investors.

The two basic types of derivative instruments are ________ and ________.

An equity instrument (also called a residual claim) obligates the issuer of the financial asset to pay the holder an amount based on earnings, if any, after holders of debt instruments have been paid.

Derivative instruments derive their value from ________.

No one holds the extreme view that the essence of innovation is the introduction of financial instruments that are more efficient for redistributing risks among market participants.

The market participants include households, business entities, national governments, national government agencies, state and local governments, supranationals, and regulators.

Globalization means the integration of financial markets throughout the world into an international financial market.

A intangible asset is one whose value depends on particular physical properties such as buildings, land, or machinery. Tangible assets, by contrast, represent legal claims to some future benefit.

A factor leading to the integration of financial markets is ________.