All of the following describe the market for credit default swaps on mortgage-backed securities in the mid-2000s EXCEPT
A) an increasing number of buyers were speculators.
B) AIG apparently underestimated the risk involved with mortgage-backed securities.
C) the volume of credit default swaps was too low making it difficult to assess their value.
D) payments by buyers were too low relative to risk.
C
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Everything else held constant, would an increase in volatility of stock prices have any impact on the demand for rare coins? Why or why not?
What will be an ideal response?
An increase in total revenue will result if
A) demand is inelastic and price decreases. B) demand is elastic and price decreases. C) demand is elastic and price increases. D) demand is unitary elastic and price increases.
Segmenting markets based on the percentage of a product or service that consumers buy or use is termed
Sociodemographic Psychographic Cohort Usage
Which of the following is the best example of a market failure that would lead a firm to extract resources at a rate that is faster than the rate that would maximize its long-term stream of profits?
A. The market price of the resource rises. B. Weak property rights create fears that firms will not be allowed to extract in the future. C. An increase in market interest rates. D. New information suggests that the demand for the resource will be greater in the future.