During the financial crisis of 2007-2009, some financial instruments that received high ratings in terms of their safety turned out to be much riskier than those ratings indicated. Which core principle, when violated, might lead to inefficiencies in financial markets?

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6 June, 05:04

During the financial crisis of 2007-2009, some financial instruments that received high ratings in terms of their safety turned out to be much riskier than those ratings indicated. Which core principle, when violated, might lead to inefficiencies in financial markets?

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Ean Daugherty · Answer 1

Answer

Information is basic for decisions

Explanation:

The crisis as said has a huge mistake by one side risk view provided by rating company's said that the most toxic invented financial products where safe when they weren't. By the other side the same institutions who created those toxic products incurred into ethic's fault because despite the fact they'd known those where toxic products decided offering it to the market