The Lesson from the Credit Crisis of 2007-2009 Is That

question 79

Multiple Choice

The lesson from the credit crisis of 2007-2009 is that securitized assets and credit swaps:

• A)are complex financial instruments.
• B)are difficult to correctly value and measure in terms of risk exposure.
• C)are a part of cyclically sensitive markets.
• D)possible vehicles to set in motion a financial contagion that cannot be easily stopped without active government intervention.
• E)All of the options are correct.

---

Definitions:

Readability

The ease with which text can be read and understood by the target audience, influenced by factors like sentence structure, vocabulary, and layout.

Proposal

A formal written offer or plan submitted for consideration or decision by others, often detailing a project or business idea.

Online Blog

A digital platform or website where individuals or organizations regularly publish posts and articles on various topics.

Traditional Report

A conventional document or presentation that typically follows a standardized structure to communicate information or research findings.