The Development of "Collateralized Debt Obligations", by Drexel Burnham Lambert

question 17

Multiple Choice

The development of "collateralized debt obligations", by Drexel Burnham Lambert, shows that

• A)well-paid bankers always come up with good ideas.
• B)the financial system can be very fragile.
• C)financial products are easily copied so first movers must quickly establish a large track record of successful trades.
• D)a financial crisis was inevitable.

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Definitions:

Social Learning Theory

A theory that suggests individuals learn behaviors through observing and imitating others, alongside reinforcement mechanisms.

S-R Association

In psychology, it refers to the connection between a stimulus and the response it elicits, fundamental in the study of behaviorism.

Operant Conditioning

A training technique that alters the power of an action through rewards or consequences.

If … Then Contingency

A conditional statement indicating that one event (the consequence) follows another (the condition) only if the first event occurs.