Off-Balance-Sheet Activities Contributed to the 2008 Global Financial Crisis with Increasing

question 68

Multiple Choice

Off-balance-sheet activities contributed to the 2008 global financial crisis with increasing financial market solvency risk exposure caused by:

• A)loans sold with recourse had contingent liability implications for FIs when these loans went 'bad'
• B)sub-prime mortgages and OBS securities backed by these mortgages peaked prior to the mortgage market collapse
• C)the market for derivatives was opaque and 'trades' complex leading to counterparty risk where firms dealt directly with each other
• D)All of the listed options are correct.

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Definitions:

SELL Sequence

A sales technique that involves showing the feature, explaining the advantage, leading to the benefit, and letting the customer see themselves using the product.

Energy Efficiency

The practice of using less energy to provide the same service or achieving a task, leading to reduced energy consumption and expenses.

Sales Presentation

A formal meeting or pitch where a salesperson showcases a product or service to potential buyers, aiming to secure a sale.

Psychological Factors

Elements of human behavior such as motivation, perception, learning, beliefs, and attitudes that influence consumers' buying decisions.