Analyze the role of "derivatives" 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 became so complex that no one could understand them, which masked losses and made assets extremely difficult to evaluate. D) Derivatives forced many banking institutions to sell or close, condensing the control of the finance industry into a few small hands.
Answer: C
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