Question

What message does Professor Ferguson intend to convey when he says that 'Finance evolves through natural selection'?

• A. Just as Darwinian evolution progresses to produce more complex life forms, so does finance evolve to produce more complex techniques.
• B. Finance evolves through the three step natural selection process of creation, selection and destruction.
• C. Changes occurring in the markets prompt the development of new financial products and techniques.
• D. As species less adapted to the surroundings go extinct in nature so do ill - conceived financial products in markets.

Answer 1

The correct option is C

Changes occurring in the markets prompt the development of new financial products and techniques.

See the fifth paragraph 'he believes that new sorts of finance ........ environment changes'. The idea that Professor Ferguson wants to convey here is that just as organisms evolve in accordance with the changes in their environment, so do new forms of finance develop as per new market conditions.
Option A equates evolution with progress which is just the opposite of what Professor Ferguson says. Options B and D are general statements.