The Calculation of the Risk-Adjusted Asset Values of OBS Market

question 84

Multiple Choice

The calculation of the risk-adjusted asset values of OBS market contracts

• A)nearly always equals zero because the exchange over which the contract initially traded assumes all of the risk.
• B)requires multiplication of the credit equivalent amounts by the appropriate risk weights.
• C)requires the calculation of a conversion factor to create credit equivalent amounts.
• D)All of these.
• E)requires multiplication of the credit equivalent amounts by the appropriate risk weights, and requires the calculation of a conversion factor to create credit equivalent amounts.

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Definitions:

Ethical Subjectivism

The philosophical view that moral values and judgments are based on personal feelings or opinions rather than objective facts.

Moral Truth

A concept referring to the idea that there are universal ethical standards that apply across cultures and situations, guiding what is right and wrong.

Categorical Imperative

Kant’s fundamental moral principle that helps to determine what our duty is.

Humanity

The quality or condition of being human, often associated with compassion, empathy, and the collective human species.