But similar lessons were learned with regard to interest rate risk management in the early 1990s when many institutions purchased various types of structured collateralized mortgage obligations (CMOs) with embedded interest-rate options that were not fully understood – and then incurred substantial and unexpected losses when interest rates rose in 1994.
Other programs, like the Philadelphia Fed's Keys to Financial Success curriculum and the St. Louis Fed's economic education guides and videos, support students through knowledge and skills development to understand how economics impacts their day-to-day lives.1 We all know that the financial services marketplace is vast and that it evolves very quickly, offering consumers a wide and growing range of choices among financial products and providers.