Part 1. Definition
In this task, you are given a question and a context passage. You have to answer the question based on the given passage.
Part 2. Example
what is the first event mentioned?, Context: The Russian Revolution is the series of revolutions in Russia in 1917, which destroyed the Tsarist autocracy and led to the creation of the Soviet Union. Following the abdication of Nicholas II of Russia, the Russian Provisional Government was established. In October 1917, a red faction revolution occurred in which the Red Guard, armed groups of workers and deserting soldiers directed by the Bolshevik Party, seized control of Saint Petersburg (then known as Petrograd) and began an immediate armed takeover of cities and villages throughout the former Russian Empire.
Answer: Russian Revolution
Explanation: This is a good example, and the Russian Revolution is the first event mentioned.
Part 3. Exercise
What has a preferable recovery rate?, Context: For a variety of reasons, market participants did not accurately measure the risk inherent with financial innovation such as MBS and CDOs or understand its impact on the overall stability of the financial system. For example, the pricing model for CDOs clearly did not reflect the level of risk they introduced into the system. Banks estimated that $450bn of CDO were sold between "late 2005 to the middle of 2007"; among the $102bn of those that had been liquidated, JPMorgan estimated that the average recovery rate for "high quality" CDOs was approximately 32 cents on the dollar, while the recovery rate for mezzanine CDO was approximately five cents for every dollar.
Answer:
"high quality" CDOs