More Detailed Financial Instruments Tend to Be

question 80

Multiple Choice

More detailed financial instruments tend to be:

• A) less costly because all possible contingencies are covered.
• B) more costly because it will cost more to create.
• C) more desirable than less detailed ones, no matter what the price.
• D) less costly because they can be standardized more easily.

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Definitions:

Minimization Problem

A type of optimization problem focused on finding the lowest value of a function within a given set of constraints.

Reallocation

The process of relocating resources or assets from one place, project, or use to another to improve efficiency or outcomes.

Northwest Corner Allocation

The Northwest Corner Allocation is a method used in operations research for finding an initial feasible solution to a transportation problem by starting at the northwest corner of a cost matrix and allocating supplies to demands stepwise.

Source 1-Destination 1

Represents a simplified notation for mapping a specific source to a specific destination, often used in logistics and data flow diagrams.