Question

Alan Greenspan believed financial markets were inherently un-stable and argued against the deregulation of financial services firms in the U.S.

Select one:

True

False

John Plender believed that “hedging” could reduce the risk to an individual party taking out insurance, but it increased the risk of the system as a whole

Select one:

True

False

Timothy Geithner was quoted as saying “Our system failed in basic fundamental ways. To address this will require comprehensive reform. Not modest repairs at the margin, but new rules of the game.”

Select one:

True

False

Answer 1

False.
Alan greenspan believe that he was able to recharge the economy bi sharply cutting the rates. The financial market was dependent on this after is rescue in 1987. This become to know as greenspan put which was a floor where greenspan could always put under the prices of securities. But the lower rates were working. Greenspan argued that the housing bubble was not a result of a short run load rates of interest instead it was global phenomena which was caused by decline which was progressive in a long term rates of interest. As well as a direct consequence of the existing relationship in between the the rates of higher savings in world which is developing and remains inverse in the developed World.

True.
Increase in the demand for safe assets.accumulation of the official Reserve of the excess savers emits the developing world had an important role to play. Higher real return one desired by the equity investors.

True. Financial stability cannot directly depend on the super virus who identify and preemptively define any source of the crisis which requires the safeguard which could help the system in which standing the force and different tools of the government which can used to limit the damage.