"Derivatives" Were

question 34

Multiple Choice

"Derivatives" were

• A) sometimes based on bundles of subprime mortgages.
• B) closely regulated by the government.
• C) able to generate as much as 40 times the value of the underlying assets.
• D) a conservative alternative to the other more reckless forms of investment.

---

Definitions:

Average Annual Income

The average amount of money earned per year over a specified period.

Net Cash Flow

The difference between a company's cash inflows and outflows over a specific period of time.

Cash Flowing

The movement of funds in and out of a business, indicating its operating, investing, and financing activities.

Expenses

Amounts used to generate revenue; assets used up or services consumed in the process of generating revenues.