Question

The most significant change in the economic environment that changed the demand for financial products in recent years has been

a. the aging of the baby-boomer generation.
b. the dramatic increase in the volatility of interest rates.
c. the deregulation of financial institutions.
d. the dramatic increase in competition from foreign banks.

Answer 1

B

Step-by-step explanation:

The scenario of volatility has affected not only interest rates but also other financial products like commodities, stocks, currencies, and other markets influenced by the 2011 crisis and other events. On the table below, we have the volatility of interest rates. The higher the interest rates the higher the return for investors. This explains why there was an increase in the demand for financial products, in this period.

Answer 2

Answer:B. The dramatic increase in the volatility of interest rate.

Step-by-step explanation:

Financial products are only patronize based on the return or interest rate.