All of the Following Are Problems Cited by Warren Buffet

question 46

Multiple Choice

All of the following are problems cited by Warren Buffet as problems with derivatives not traded on exchanges EXCEPT

• A)they are thinly traded which makes it difficult to determine their value.
• B)firms do not set aside reserves against potential losses.
• C)they involve substantial counterparty risk.
• D)they were not flexible enough due to lack of standardization.

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Definitions:

Systemic

Pertaining to or affecting the entire body or an entire system, often used in the context of systemic issues like racism or inequality that pervade all levels of society.

Dominant Structures

Refers to the overarching systems and institutions in society that hold the most power and influence over societal norms, values, and policies.

Internet

A global network of interconnected computers that allows individuals to share information and communicate over long distances instantaneously.

Native Americans

Indigenous peoples of the United States, including both the mainland and Alaska Natives, who have diverse cultures, languages, and histories.