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In Exposure Netting, a Risk Management Technique Similar to Multilateral

question 56

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In exposure netting, a risk management technique similar to multilateral netting, the firm runs a centralized clearing account that matches and nets out FX exposure across currencies or currency families.


Definitions:

Groupthink Cohesiveness

A phenomenon where a group's desire for harmony or conformity in decision-making results in an irrational or dysfunctional outcome.

Obedience Studies

Research endeavors focused on understanding how and why individuals comply with commands or instructions from authority figures.

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