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
5209 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

Give key differences between BSE and NSE?

0 Answers IBPS, RBI,

hi, as a MBA fresher specialised in finance, initially what are the fields we might get jobs and as what,?? and do u think the recession will have an imapct to us this in seeking the jobs?

8 Answers Fresher, ICICI, Insurance,

What is the educational qualification required for marketing officer and asst. Manager posts?

0 Answers

what is the difference between a cash flow statement and a funds flow statement?

3 Answers

Which was the first company to be listed in NASDAQ?

0 Answers Bank of Baroda,

What do u you mean by deferred revenue expenditure?

7 Answers Capital IQ,

what r the shedule under India government & the defenition

0 Answers

Could anyone please explain, what are basel-i and basel-ii?