Which of the Following Is an Example of How Incentive

question 497

Multiple Choice

Which of the following is an example of how incentive structures contributed to the collapse of investment banks?

• A) The bonus structure of most executives was tied to long-term profitability.
• B) The ratings agencies were paid attractive fees by investment banks seeking high ratings for their securities.
• C) Mortgage-backed securities were closely scrutinized in order to minimize risk and obtain higher ratings.
• D) Despite SEC regulations, investment banks kept leverage ratios low in order to increase profits.

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Definitions:

Gender Role

The set of societal norms dictating the types of behaviors that are considered acceptable, appropriate, or desirable for a person based on their actual or perceived sex.

Social Position

An individual's ranking or status within a social hierarchy, which can influence their access to resources and opportunities.

Androgynous Behavior

Behavior that encompasses characteristics traditionally considered masculine and feminine, demonstrating a blend of gender traits and roles.

Gender Expression

How an individual presents their gender to others, through behavior, clothing, haircut, voice, and other forms of presentation.