Which Class of Derivatives Have Been Blamed Most Widely for Causing

question 10

Multiple Choice

Which class of derivatives have been blamed most widely for causing the financial crisis of 2008?

• A)Equity derivatives.
• B)Interest-rate derivatives.
• C)Foreign exchange derivatives.
• D)Credit derivatives.

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Definitions:

Utilities Possibilities Frontier

A curve depicting all possible allocations of goods and services that maximize two or more parties' utility under a given condition.

Utilities Possibilities Frontier

A graph that shows the maximum satisfaction levels of two or more agents in an economy based on the allocation of resources.

Marginal Utility

The change in satisfaction or utility an individual gains from consuming an additional unit of a good or service.

Efficient

The quality of achieving maximum productivity with minimum wasted effort or expense.