The Following Was NOT an Example Cited by Nobel Laureate

question 6

Multiple Choice

The following was NOT an example cited by Nobel laureate economist Merton Miller in support of his view that "regulations and taxes cause financial innovation":

• A) Eurobonds
• B) Eurodollars
• C) futures contracts
• D) swaps
• E) zero-coupon bonds

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Definitions:

Personal Power

Personal power is the influence or authority an individual has over others, derived from personal attributes or skills, rather than from formal positions.

Expert Power

The ability to control another’s behavior because of the possession of knowledge, experience, or judgment that the other person does not have but needs.

Knowledge

The information, understanding, and skills that individuals acquire through experience or education.

Experience

The knowledge or skill acquired by direct observation, participation, or event occurrence over time.