As a Result of the Negative Role That Over-The-Counter Derivative

question 52

Multiple Choice

As a result of the negative role that over-the-counter derivative securities played during the financial crisis,

• A)they are no longer allowed to be used by agents other than commercial banks.
• B)all derivative securities must now be traded on an organized exchange.
• C)U.S.depository institutions can no longer trade derivative securities for their own account.
• D)the Commodities Futures Trading Commission (CFTC)was appointed as the primary regulator of all derivative securities.

---

Definitions:

Group Cohesion

The bonding together of members of a group, resulting in a strong sense of collective identity, loyalty, and togetherness.

Loyalty To Neighbors

A sense of allegiance or support given to those living in close proximity, often manifesting in community assistance and solidarity.

Very Attractive

Possessing physical or other qualities that generate a high level of appeal or interest in others.

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.