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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What is the most important element of public policy?
A. creating a budget B. feeding the poor C. subsidizing business D. limiting spending
Which statement can explain why a public opinion poll taken in 2006 found that large numbers of Americans still believed Iraq had weapons of mass destruction and significant links to Al Qaeda?
a. The poll was deliberately constructed to make Americans look uninformed. b. People often hold onto impressions even after the facts have been shown to them. c. Americans knew that the weapons of mass destruction would eventually be found. d. The polling sample included a disproportionate number of people who supported the Iraq War in 2002.
Which of the following best defines an international crisis?
a. A situation that is highly threatening. b. A situation that was unexpected. c. A situation that requires rapid decisions. d. All of the above.
Residents of Washington, D.C. pay federal income tax but not Social Security Tax
a. True b. False Indicate whether the statement is true or false