Which of the following describes the shift in trading practices during the financial crisis? A) A move from over-the-counter trading to formal exchange trading with improved protec... Which of the following describes the shift in trading practices during the financial crisis? A) A move from over-the-counter trading to formal exchange trading with improved protections B) The enforcement of tighter lending standards for mortgage issuance C) The replacement of formal exchange trading with over-the-counter markets lacking insolvency protections D) The introduction of new regulatory measures to manage trading risks
Understand the Problem
The question is asking to identify which option correctly describes how trading practices changed during the financial crisis, highlighting the key shifts in market regulations and practices.
Answer
The replacement of formal exchange trading with over-the-counter markets lacking insolvency protections.
The final answer is the replacement of formal exchange trading with over-the-counter markets lacking insolvency protections.
Answer for screen readers
The final answer is the replacement of formal exchange trading with over-the-counter markets lacking insolvency protections.
More Information
During the financial crisis, there was indeed a shift toward more over-the-counter (OTC) trading, which is less regulated and less transparent compared to formal exchange trading. OTC markets often lack the protections against insolvency that formal exchanges provide.
Sources
- HOUSE COMMITTEE ON - Texas House of Representatives - house.texas.gov
Thank you for voting!
