The Best Way to Deal with Counterparty Risk Is To

question 5

Multiple Choice

The best way to deal with counterparty risk is to:

• A)make sure that the counterparties are good credit risks.
• B)deal only with firms that have been dealt with in previous transactions.
• C)avoid it.
• D)require counterparties to post collateral to ensure the performance of their obligations.

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Definitions:

Biological Evolution

The process by which species of organisms change over time through genetic variation and natural selection.

Biological Extinction

The complete disappearance of a species from Earth, meaning no living members of the species exist anymore.

Native Vegetation

Plant species that are indigenous to a particular area and have not been introduced by human activity.

Habitat Destruction

The process in which natural habitat is rendered unable to support the species present, leading to the displacement or destruction of its biodiversity.