Which of the Following Methods Is a Means of Credit

question 618

Multiple Choice

Which of the following methods is a means of credit risk mitigation?

• A) entering into a plain vanilla IRS
• B) entering into collateral agreements
• C) hedging a portfolio's USD exposure
• D) investing only in sizeable and liquid markets

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Definitions:

Scheme

A plan or strategy designed with a specific aim or outcome in mind, often outlining steps or methods to achieve it.

Violation of Expectations

A method used in developmental psychology to study infants' understanding of the world by gauging their reactions to events that deviate from what they anticipate.

Event

An occurrence or happening, often significant in nature.

Infants

Infants are young children, typically under one year of age, who are in the earliest stage of their lives, characterized by rapid physical and cognitive development.