With which of the following events are derivatives,hedge funds,and sub-prime mortgages all associated?
A)The Great Depression
B)The post-World War II economic boom period
C)The financial crisis of 2008-2010
D)The stagflation years of the 1970s

Question

Quizplus · Accepted Answer

Derivatives, hedge funds, and sub-prime mortgages were all major factors in the financial crisis of 2008-2010. Derivatives, such as credit default swaps, were widely used and contributed to the collapse of major financial institutions. Hedge funds also played a role in the crisis, as many were highly leveraged and suffered huge losses. Sub-prime mortgages, which were risky loans given to borrowers with poor credit, were at the heart of the housing bubble that burst and led to the crisis.

With Which of the Following Events Are Derivatives,hedge Funds,and Sub-Prime