was it the wrong and agressive use of derivative instruments that led to the f

was it the wrong and agressive use of derivative
instruments that led to the financial crisis in the us and
the world over?

Question Posted / ravis maqbool

2 Answers
4418 Views
I also Faced
E-Mail Answers

Answers were Sorted based on User's Feedback

was it the wrong and agressive use of derivative instruments that led to the financial crisis in t..

Answer / aditya ratnam

The exact answer to this is MBS and CDO.

MBS = Mortgage based securities.

CDO = collateralized Debt Obligation.

You can read the full Crisis story on wikipedia under the heading 'subprime mortgage crisis'

Regards.

Is This Answer Correct ?

3 Yes

0 No

was it the wrong and agressive use of derivative instruments that led to the financial crisis in t..

Answer / raghs

The aggressive use of fancy derivative instrument was just
one of the compositions of the crisis, where as us is known
to have highest composition in fixed income instruments, the
liquidity crunch, stagflation which led to fall in the
realestate and excess belonging on external sources led to
fall in overall GDP. and took the world with it

Is This Answer Correct ?

2 Yes

2 No

Post New Answer

More Banking Finance Interview Questions

share holdersfund

14 Answers FactSet Systems,

realationship bewteen bank& customer.

0 Answers State Bank Of India SBI,

i have a interview in union bank i want which type of question their ask so give me guide line according to that

3 Answers Union Bank,

if Debtors payment is 60 days then what is working capital of software company ???

5 Answers

how does rupee strengthen when the Reserve Bank of India sells dollars in the market???? please i need an answer

7 Answers

What is DeMat account?

0 Answers

PLEASE SEND MODEL QUESTIAN PAPER TO MY EMAIL salimallappra@gmail.com

0 Answers State Bank Of India SBI,

In the resrarch process, why is the problem defination stage probably the most important stage? What are the key issues that need to be addressed at this stage?

1 Answers University,

What is amortization?

8 Answers

What is Yield?

0 Answers SEBI,

Name the fund management scheme introduced by rbi which helps the banks in their fund management?

0 Answers

what type of questions are generally asked in the interviews for clerical recruitment

2 Answers IBM,

For more Banking Finance Interview Questions Click Here