DVA for a Bank Is Most Dependent on

question 12

Multiple Choice

DVA for a bank is most dependent on

• A) The default probabilities of the bank in future time periods
• B) The default probabilities of the bank's counterparties in future times periods
• C) Both A and B
• D) Neither A nor B

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Definitions:

Ribose Sugar

A five-carbon sugar that is a fundamental component of RNA (ribonucleic acid).

Free Energy

A thermodynamic quantity representing the amount of energy in a system that is available to do work.

Exergonic

A process that releases energy to its surroundings, typically in the form of work or heat.

High Energy Bond

A bond, typically found between phosphate groups in ATP, that releases a significant amount of energy when broken, commonly used in cellular processes.