To minimize risk, investors that purchased mortgage-backed securities (MBSs) also bought ________ to transfer the risk of those securities to someone else, in case those MBSs failed
A) adjustable-rate mortgages
B) credit-default swaps
C) loan-to-value notes
D) asset-backed equivalents
E) debt-security derivatives
Answer: B
Explanation: To protect themselves against default risk, investors who bought MBSs could buy credit default swaps to transfer that risk to somebody else. By the peak of the housing bubble, $45 trillion was invested in swaps, an amount approaching the output of the entire global economy.
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Consequential damages:
A. occur when the special circumstances of the plaintiff cause him or her to suffer losses that would not ordinarily be foreseeable as a result of the breach. B. are very small damages that the court may award the plaintiff when a technical breach of contract has occurred without causing any actual loss. C. are recoverable unless the defendant had reason to foresee them at the time the contract was created. D. are measured by the loss in value of the promised performance.
The ability of websites to serve as prompt exchanges of information has supported another popular business model, the _____ or name-your-own-price auction.
Fill in the blank(s) with the appropriate word(s).
How does projection occur?
What will be an ideal response?
Answer the following statements true (T) or false (F)
1. Strategies to be used to address the needs of the customers at the base of the pyramid depend on the income level of the customers. 2. The first generation of business strategies targeted to the poorest customers focused on “fortune finding,” while the second generation of business strategies focuses on “fortune creating” by forming partnerships with local businesses within the poorest countries. 3. The three critical attributes of a successful social entrepreneur are wealth, intelligence, and the ability to speak multiple languages. 4. A Social bricoleur is one who uses his or her existing resource base in order to address the social mission of the organization. 5. An example of a social engineer entrepreneur is Jacqualine Novogratz who established the Acumen Fund in 2001 which the mission to use entrepreneurial approaches to solve global poverty problems.