Satyajit Das: The Cultural Transformation of the World of Finance (1/6)

The video features an author discussing his book on derivatives, exploring his career in the industry, and examining the historical development of financial derivatives. He reflects on the influence of economic theories and the practical challenges faced in the derivatives market, highlighting the evolution of financial practices and the impact of theoretical frameworks.

What motivated the author to write the book 'Extreme Money'?

• To share his experiences in the derivatives industry

• A desire to explore new financial theories

• To criticize modern banking practices

• To promote a new financial product

What does the author suggest about the origins of the financial 'mess'?

• It was caused by a single event in the 2000s

• It was a gradual process over many years

• It was planned by financial institutions

• It was due to a lack of regulation

Which three individuals does the author refer to as the 'three gods' of financial theory?

• Keynes, Friedman, and Hayek

• Scholes, Merton, and Black

• Markovits, Samuelson, and Sharpe

• Smith, Ricardo, and Marx

How did the financial industry change in the late 80s and early 90s according to the author?

• It became more reliant on practical experience

• It focused more on customer service

• It reduced its reliance on technology

• It shifted towards academic training and theoretical models

What was the author's view on the use of theoretical frameworks in financial decision-making?

• They were often misunderstood and misapplied

• They were essential for success

• They were only useful for academic purposes

• They were irrelevant to the industry

What challenge does the author highlight about risk management in the modern financial industry?

• Increased regulation

• Tighter profit margins

• Lack of technological advancement

• Over-reliance on manual processes

How did the author describe the financial industry's approach to mistakes in the past?

• Mistakes were rare and unusual

• Mistakes were severely punished

• Mistakes were ignored

• There was a tolerance for mistakes due to large profit margins