Of the Following, Which Risk Is Most Likely to Be

question 42

Multiple Choice

Of the following, which risk is most likely to be managed with the use of derivative contracts?

• A)Liquidity risk
• B)Funding risk
• C)Credit risk
• D)Market and interest rate risks
• E)Operating risk

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Definitions:

Mania

A mental health state characterized by an extremely elevated mood, hyperactivity, and often impulsive behavior, associated with bipolar disorder.

Bipolar Disorder

An emotional disorder characterized by radical changes in mood, encompassing both manic or hypomanic highs and depressive lows.

Worthlessness

A profound feeling of insignificance or lack of value.

Major Depressive Disorder

A mental health disorder characterized by persistent feelings of sadness, loss of interest in activities, and a range of physical and cognitive symptoms.