Exposure Netting Is a Risk Management Technique Similar to Multilateral

question 31

True/False

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

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Definitions:

Negligence

The failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, leading to harm or damage.

Professional Misconduct

Inappropriate or unethical behavior by a professional in their line of work, violating professional ethics or standards.

Commission of Crime

The act of carrying out or committing a criminal act.

Duty of Care

A legal obligation which requires individuals or organizations to exercise reasonable care towards others, to avoid causing harm or risking safety.