Which of the Following Statements Is True

question 64

Multiple Choice

Which of the following statements is true?

• A)FIs may set an aggregate limit of less than the sum of two individual industry limits if two industry groups' performance are negatively correlated.
• B)FIs may set an aggregate limit of less than the sum of two individual industry limits if two industry groups' performance are highly correlated.
• C)FIs may set an aggregate limit of less than the sum of two individual industry limits if two industry groups' performance are not correlated.
• D)FIs may set an aggregate limit of more than the sum of two individual industry limits if two industry groups' performance are negatively correlated.

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Definitions:

Unequal Size

A description of items, groups, or entities that are not the same in dimensions, capacity, or magnitude.

Assets

Resources with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.

Sense of Self

The perception or awareness one has of themselves as a separate, distinct individual, including their traits, beliefs, and feelings.

Social Organization

The patterned network of relationships constituting a coherent society or segment of society.