1. According to Time, what is the purpose of the Credit Default Swap (CDS)?
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2. At the time of the Time article publication, what did the author view as a potential ramification of the meltdown of the CDS market?
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3. According to Gary Becker in the blog post “Why the Warnings Were Ignored: Too Many False Alarms,” what is the reason economists and others could NOT see the financial crisis coming?
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4. While helping banks to manage risk, what did financial instruments encourage banks to do?
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5. Based on what you read, which statement accurately describes the societal costs and benefits of financial instruments?