The following are the main sources for financial innovation except

A. avoidance of costly regulation

B. promotion of bank regulations

C. changes in demand conditions

D. changes in supply conditions

Which of the following financial innovations helped banks reduce their interest-rate risk that came from the increased volatility of interest rates since the 1970s?

A.

ATMs

B.

adjustable-rate mortgages and financial derivatives

C.

bank holding companies

D.

junk bonds and commercial paper