1. 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
2. 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