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.

Question

Quizplus · Accepted Answer

Credit derivatives, specifically mortgage-backed securities and collateralized debt obligations (CDOs), were heavily involved in the subprime mortgage crisis that led to the global financial crisis of 2008. These complex securities were often improperly rated and packaged, leading to significant losses for investors and institutions holding them.

Which Class of Derivatives Have Been Blamed Most Widely for Causing