The Big Decline in Share Prices on the New York

question 77

Multiple Choice

The big decline in share prices on the New York Stock Exchange that occurred in October 1987

• A)was almost entirely attributable to the effects of index arbitrage.
• B)occurred despite the complete ban on index arbitrage in existence at the time.
• C)was not mainly the result of index arbitrage.
• D)was made less severe than it might have been because of the effects of index arbitrage.

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Definitions:

Obsessive Compulsive Disorder

A mental health disorder characterized by obsessive thoughts and compulsive actions, such as cleaning, checking, or hoarding.

Dependent Personality Disorder

A psychological condition marked by an excessive need to be taken care of, leading to submissive and clinging behavior.

Conditioning Theories

Psychological theories that explain learning as a process of behavior change resulting from the individual's interaction with the environment.

Anxiety Disorders

Mental health conditions characterized by excessive fear or worry that interferes with daily activities.