During the Most Recent Financial Crisis, the FI Segment That

question 40

Multiple Choice

During the most recent financial crisis, the FI segment that was most negatively affected by credit default swaps was

• A)commercial banks.
• B)insurance companies.
• C)pension funds.
• D)finance companies.
• E)mutual funds.

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Definitions:

Merchandising Companies

Companies that purchase goods in a finished condition and sell them without further processing, making profit through the buying and selling of merchandise.

Service Companies

Businesses that provide intangible products or services to customers, as opposed to selling physical goods.

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the financial health of a company's core business activities.

Gross Profit Margin

A financial metric that measures the proportion of money left over from revenues after accounting for the cost of goods sold, expressed as a percentage.