Which of the Following Statements Is True

question 35

Multiple Choice

Which of the following statements is true?

• A)In general, default risk on OTC contracts decreases with the time to maturity of the contract and the fluctuation of underlying prices, interest rates or exchange rates.
• B)In general, default risk on OTC contracts increases with the time to maturity of the contract and the fluctuation of underlying prices, interest rates or exchange rates.
• C)In general, default risk on OTC contracts is independent of the time to maturity of the contract and the fluctuation of underlying prices, interest rates or exchange rates.
• D)OTC contracts are generally free of default risk.

---

Definitions:

Psychological Abuse

A form of abuse involving emotional mistreatment, where the abuser uses words and psychological tactics to exert control over and diminish the self-esteem of the victim.

Exchange Theory

A social psychological perspective positing that human relationships are formed and maintained based on negotiated exchanges and perceived benefits.

Violent Behavior

Violent Behavior entails actions that involve physical force intended to hurt, damage, or kill someone or something.

Benefits Outweigh

This phrase means the advantages or positive aspects of a situation are more significant than the disadvantages or negative aspects.