The complexity of ﬁnancial services was partly responsible for the credit crunch of 2009.

Question

Quizplus · Accepted Answer

The complexity of financial services, including the use of complicated financial instruments such as mortgage-backed securities, contributed to the financial crisis of 2008-2009. The complexity made it difficult for investors to evaluate the risks of these instruments, leading to widespread losses and systemic risk in the financial system.

The Complexity of ﬁNancial Services Was Partly Responsible for the Credit