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7. Financial contracts whose values are based on the values of other underlying assets are known as: A. capital market securi
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7.the correct answer is option D,Derivative market securities

  • the term derivatives stands for a contract whose price is derived from or is dependent upon an underlying asset.it could be a financial asset such as stock, currency and market index.

8.The correct answer is option B,Behavioral finance

  • it is a famous filed of finance that suggest theories based on human psychology. Moreover, influences and biases can be the source for explanation of all types of market anomalies and specifically market anomalies in the stock market, such as severe rises or falls in stock price.

9.The correct answer is option A,Securities act 1934

  • The security exchange act of 1934 is law governing the secondary trading of securities in united states of America.

10.The correct answer is option,D,Foreign exchange market

  • foreign exchange market are markets on which individual,firm and banks buy and sell foreign currencies.it is the largest financial market with a daily turn over of USD 2 trillion

11.The correct answer is option A

  • The quantity of loanable fund increases.interest rate will be decrease.

12..the correct answer is option C,

  • Federal govt demand is said to be interest in elastic.intensive to interest rate or demand for fund is independent of interest rate
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