As a Result of the Negative Role That Over-The-Counter Derivative

question 119

Multiple Choice

As a result of the negative role that over-the-counter derivative securities played during the financial crisis,

• A)they are no longer allowed to be used by agents other than commercial banks.
• B)all derivative securities must now be traded on an organized exchange.
• C)U.S.depository institutions can no longer trade derivative securities for their own account.
• D)the Commodities Futures Trading Commission (CFTC) was appointed as the primary regulator of all derivative securities.
• E)foreign institutions may no longer participate in the U.S.derivative markets.

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Definitions:

Oedipal Complex

A psychoanalytic theory that describes a child's feelings of desire for the opposite-sex parent and jealousy towards the same-sex parent.

Superego

A component of Sigmund Freud's psychoanalytic theory, describing the part of the psyche that acts as a self-critical conscience, reflecting social standards learned from parents and teachers.

Reinforcement

In behaviorism, the reward or relief that follows a behavior, making it likely that the behavior will occur again.

Punishment

The imposition of a penalty as retribution for an offense or undesirable behavior, often used as a method to discourage such behavior.