7. Financial contracts whose values are based on the values of other underlying assets are known as: A. capital market securities B. equities market securities C money market securities D. derivatives market securities 8. The application of psychology to make financial decisions is known as: A. quantitative finance B. behavioral finance C. qualitative finance D. managerial finance 9. Which of the following securities regulations established the Securities and Exchange Commission (SEC)? A. Securities Act of 1934 B. Securities Act of 1933 C. Investment Company Act of 1942 D. Sarbanes-Oxley Act of 2002 10. As per our class discussion, what is the largest financial market in the world as measured by monetary value? A. the stock market B. the bonds market C. the options market D. the foreign exchange market 11. As the quantity of loanable funds increase, interest rates: A. decrease B. increase C. neutralize D. dissipate 12. Which of the following is said to be interest inelastic, i.e.insensitive to interest rates? A. business demand B. household demand C. government demand D. foreign demand