Which of the Following Best Describes Central Counterparties

question 12

Multiple Choice

Which of the following best describes central counterparties

• A) Help market participants to value derivative transactions
• B) Must be used for all OTC derivative transactions
• C) Are used for futures transactions
• D) Perform a similar function to exchange clearing houses

---

Definitions:

Choice Set

The collection of all possible options available to a decision-maker in a given scenario.

Clothing

Wearing apparel created from various fabrics and materials, intended to cover the body and protect it from environmental elements.

Food

Any nutritious substance that people or animals eat or drink to maintain life and growth.

Choice Set

The collection of all possible options or alternatives available to a consumer or decision-maker in a given context.