Select the Word or Phrase That Best Matches the Definition

question 7

Multiple Choice

Select the word or phrase that best matches the definition or example.
-City that developed high in the Andes (in present-day Bolivia) at the site of the world's largest silver mine and that became the largest city in the Americas,with a population of some 160,000 in the 1570s.

• A)Indian Ocean commercial network
• B)trading post empire
• C)Philippines (Spanish)
• D)British/Dutch East Indian companies
• E)Tokugawa shogunate
• F)"silver drain"
• G)Potosí
• H)soft gold
• I)African diaspora
• J)Benin
• K)Dahomey
• L)Ayuba Suleiman Diallo

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Definitions:

M&M Proposition I

A principle of corporate finance stating that in a world without taxes, transaction costs, and bankruptcy costs, and in an efficient market, a firm's value is unaffected by its financing decisions.

Leverage

The use of borrowed funds to increase the potential return of an investment or project.

Cost of Equity

The rate of return a company must offer investors to compensate for the risk of investing in its stock.