Which of the Following Is Not an Advantage of Having

question 73

Multiple Choice

Which of the following is not an advantage of having derivative securities such as swaps traded on an exchange instead of over the counter?

• A)more transparent pricing
• B)increased trading volume
• C)less standardarized contracts, allowing contracts to be tailored to the parties' specific needs
• D)more accurate information about the collateral backing a particular contract

---

Definitions:

Long-Run Cost Function

A graphical or mathematical representation showing the lowest cost at which a firm can produce any given level of output in the long run, where all inputs are variable.

Positive Output

A situation where the production of goods or services results in a quantity greater than zero.

Long-Run Cost Function

A representation of the total cost associated with producing a given level of output when all inputs, including capital, can be varied.

Positive Output

A situation in which an economic model or production process results in a positive amount of goods or services being produced.