Which statement describes the role that derivatives trading played in the recent housing market bubble?
a. "Deriving" their value from real estate speculation, derivatives created a volatile value system.
b. Derivatives fluctuate widely in value, which led many investors to buy, only to lose large sums upon downward fluctuation.
c. Derivatives forced many banking institutions to sell or close, condensing the control of the finance industry into a few small hands.
d. Derivatives became so complex that no one could understand them, which masked losses and made assets extremely difficult to evaluate.
d
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The hunt for the Washington D.C.-area sniper in 2002 was an example of
a. an unfunded mandate. b. cooperative federalism. c. states' rights. d. national supremacy. e. None of the above
For more than one hundred years after the founding of the United States, the nation’s preferred foreign policy was _____________, an idea supported by Thomas Jefferson.
a. isolationism b. internationalism c. realism d. idealism