Answer:
Dramatic increase in interest rate volatility altered the demand for financial products. This resulted in large capital gains or losses and greater uncertainty in returns on investments. Hence, innovations were created to reduce interest rate risk.
Information technology has lowered the cost of processing financial transactions, making it profitable to create new financial products and services for the public. It has also made it easier for investors to acquire information, making it easier for firms to issue securities.
Step-by-step explanation: