Netting Is the Process Under a Netting Agreement of Combining

question 56

True/False

Netting is the process under a netting agreement of combining all relevant outstanding transactions between two counterparties and reducing them to a single net sum for a party to either pay or receive.

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Definitions:

Conditioning

A behavioral process whereby a response becomes more frequent or more predictable in a given environment as a result of reinforcement, with reinforcement typically being a stimulus or reward for a desired response.

Surprise

An emotional response to unexpected events or information, characterized by heightened interest and physiological arousal.

Conditioned Emotional Response

A type of learned response in which an emotional reaction is elicited by a previously neutral stimulus through conditioning.

Classical Conditioning

The process of learning through which two stimuli are continually paired; a reaction that starts out being elicited by the second stimulus is in the end prompted by the sole presentation of the first stimulus.