Chapter 9 2008 Financial Crisis Flashcards
0
Q
Speculation
A
Occurs when people make investments based on interest anticipated or hoped for outcomes without having an ownership stake in the assets being insured
1
Q
Synthetic financial products
A
Which are products that like an underlying value in the ass it’s like a credit default swap written on the subprime mortgage backed securities
2
Q
Credit default swap
A
Is like an insurance product gone awry
3
Q
Risk preferrer
A
Is an investor who seeks a high level of return on investments
4
Q
Risk averse
A
He or she would prefer to invest in the product that has very little risk of failure
