Adequate Procedures and Controls Associated with Swap Transactions Should Exist

question 88

Multiple Choice

Adequate procedures and controls associated with swap transactions should exist to help minimize the risks inherent in transaction process. Example/s of these controls may include:

• A) A daily reconciliation of traders' positions should be performed
• B) To minimize market risk in hedge transactions: There should be independent sign-off procedures for hedging models All hedge strategies should be clearly defined All software and products should be secure and temper resistant
• C) All transactions should be authorized and affirmed
• D) All of these

---

Definitions:

Metabolic Equivalents

A physiological measure expressing the energy cost of physical activities as multiples of the metabolic rate at rest.

Moderate-intensity Activity

Physical activities that elevate the heart rate and breathing but still allow for conversation, such as brisk walking or light cycling.

Cardiovascular Exercise

Any form of sustained physical activity that strengthens the heart and improves the efficiency of the cardiovascular system in pumping blood throughout the body.

Intensity

Refers to the extent of strength or force involved in an activity or phenomenon.