Which of the Following Is True of the Dodd-Frank Act

question 10

Multiple Choice

Which of the following is true of the Dodd-Frank Act with regard to derivatives?

• A) The Dodd-Frank statute will standardize derivatives traded on exchanges to decrease transparency.
• B) Derivatives must be routed through a subsidiary to ensure that companies using them post collateral.
• C) Banks can continue to trade derivatives in-house based on interest rates and foreign exchanges, and for purposes of hedging risk.
• D) Banks will have to spin off their riskier derivatives and trade them through a clearing house.

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Definitions:

Rational Expression

A rational expression is a fraction where the numerator and/or the denominator are polynomials.

Simplify

The process of reducing a mathematical expression or equation to its most concise and simple form, removing parenthesis and combining like terms when possible.

Rational Expression

A fraction where both the numerator and the denominator are polynomials.

Domain

The set of all possible input values for a function.