When Lehman Brothers Collapsed on 15 September 2008, It Had

question 1

Multiple Choice

When Lehman Brothers collapsed on 15 September 2008, it had a massive effect on other financial companies such as AIG because

• A) Lehman's was an important player in the inter-bank market.
• B) Many of them had sold CDS that provided insurance against default by Lehman's.
• C) Governments and central banks panicked.
• D) Redundant Lehman's employees made claims on their unemployment insurance policies, sold by these companies.

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Definitions:

Superordinate Goal

A common problem or shared goal that groups work together to solve or achieve.

Common Problem

A widely shared or frequently encountered issue that affects or is relevant to a large number of people.

Shared Goal

A common objective or purpose that is intended to be achieved by a group of individuals collectively.

Mortality Salience

The awareness by an individual that their death is inevitable, which can influence behavior and attitudes in significant ways.