There are two extreme views of financial innovation. Which of the below is ONE of these?
A. Some hold that the essence of innovation is the introduction of financial assets that are less efficient for redistributing risks among market participants.
B. There are some who believe that the minor impetus for innovation has been the endeavor to circumvent regulations and find loopholes in tax rules.
C. Some hold that the essence of innovation is the introduction of financial instruments that are more efficient for redistributing risks among market participants.
D. None of these
Answer:C
There are two extreme views of financial innovation. Which of the below is ONE of these?
A. Some hold that the essence of innovation is the introduction of financial assets that are less efficient for redistributing risks among market participants. B. There are some who believe that the minor impetus for innovation has been the endeavor to circumvent regulations and find loopholes in tax rules. C. Some hold that the essence of innovation is the introduction of financial instruments that are more efficient for redistributing risks among market participants. D. None of these