Which of the Following Acts Required That Financial Derivatives Be

question 3

Multiple Choice

Which of the following acts required that financial derivatives be traded in established, regulated markets?

• A)Glass-Steagall Banking Act
• B)Gramm-Leach-Bliley Financial Services Modernization Act
• C)Dodd-Frank Wall Street Reform and Consumer Protection Act
• D)Celler-Kefauver Financial Reform Act

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Definitions:

Real Options

The value of additional decision-making opportunities available to a business when investing, likened to financial options.

Cash Flow

The amount of cash and cash equivalents being transferred into and out of a business, indicating its liquidity position.

Net Present Value

Net present value (NPV) is the calculation used to find today’s value of a future stream of payments and earnings, accounting for the time value of money.

Cost of Capital

The return rate that a company must achieve in order to compensate its investors for the risk of the investment, including the cost of equity and debt.