AIG Almost Went Bankrupt in 2008 Because

question 57

Multiple Choice

AIG almost went bankrupt in 2008 because

• A) the value of the securities underlying its credit default swaps declined significantly.
• B) it lacked the collateral required by buyers of its credit default swaps.
• C) prices of securities underlying their credit default swaps were hard to determine since they were no longer actively traded.
• D) all of the above.

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Definitions:

Social Judgment

The process of evaluating the behavior or characteristics of others within a societal or cultural context.

Problem-Solving Skills

The ability to identify, analyze, and come up with effective strategies to solve problems.

Katz's Model

A theory developed by Robert Katz that identifies three essential skills for effective leadership: technical, human, and conceptual.

Technical Skills

The expertise and competence required to perform specific tasks, often involving practical use of complex systems or equipment.