As a Result of the Negative Role That Over-The-Counter Derivative

question 119

Multiple Choice

As a result of the negative role that over-the-counter derivative securities played during the financial crisis,

• A)they are no longer allowed to be used by agents other than commercial banks.
• B)all derivative securities must now be traded on an organized exchange.
• C)U.S.depository institutions can no longer trade derivative securities for their own account.
• D)the Commodities Futures Trading Commission (CFTC) was appointed as the primary regulator of all derivative securities.
• E)foreign institutions may no longer participate in the U.S.derivative markets.

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Definitions:

Continued Life

A term often used in estate planning or business continuity planning that refers to an entity or agreement remaining in effect despite changes in membership or ownership.

Types of Losses

Various categories of detriment or disadvantage experienced, such as financial, operational, or reputational loss.

Nature of Activity

A descriptor of the fundamental actions, purpose, or operations of an individual, organization, or process.

Special Training

Tailored education or instruction provided to individuals or groups to improve specific skills or knowledge for particular purposes.