1. From the U.S. regulatory pyramid, which of the following choices lists the key participants from top to bottom?

   a. U.S. Congress, SEC, NYSE and other regulatory organizations, Individual brokerage firms

   b. individual brokerage firms, SEC, NYSE and other regulatory organizations, U.S. Congress

   c. NYSE and other regulatory organizations, U.S. Congress, Individual brokerage firms, SEC

   d. SEC, Individual brokerage firms, U.S. Congress, NYSE and other regulatory organizations

2. With shareholder wealth maximization as the manager's goal, capital may be termed ________.

   a. borrowed

   b. patient

   c. bought

   d. impatient

3. Signed into law on July 30, 2002, the ________ Act requires CEOs of publicly traded companies to vouch for the veracity of the firm's published financial statements.

   a. McCain-Merrill

   b. Sarbanes-Oxley

   c. Humphrey-Hawkins

   d. Smoot-Hawley

4. Many financial concepts taught in basic finance courses are actually culturally determined norms.

   a. true

   b. false

5. ________ is the study of how shareholders can motivate management to accept prescriptions of the shareholder wealth maximization model.

   a. Patient capitalism

   b. The theory of multinational finance

   c. The capital asset pricing model

   d. Agency theory