In Order to Reduce Interest Rate Swap Risk Exposures,a Financial

question 1

Multiple Choice

In order to reduce interest rate swap risk exposures,a financial intermediary may:

• A) practise marking-to market.
• B) use margin calls.
• C) ask for security collateral.
• D) do all of the given answers.

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Definitions:

Recessive

Describes a gene that is expressed in offspring only when it is inherited from both parents, as opposed to a dominant gene.

Epigenetics

The study of heritable changes in gene expression that occur without changes to the DNA sequence itself.

Genotype

The genetic makeup of an individual organism, encompassing all of its genes.

Phenotype

The set of observable characteristics of an individual resulting from the interaction of its genotype with the environment.