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.

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Definitions:

Observer Bias

A form of cognitive bias that occurs when researchers' expectations, beliefs, or preferences influence their observations and recording of data, potentially affecting the validity of the results.

Psychoanalytic Psychology

A branch of psychology focusing on the influence of unconscious mind on human behavior, founded by Freud.

Freud's Ideas

Freud's ideas revolve around psychoanalytic theories, including the unconscious mind, defense mechanisms, the structure of the personality (id, ego, superego), and the psychosexual stages of development.

Surveys

A method of gathering information from a sample of people, typically by asking them questions to understand opinions, behaviors, or characteristics of a larger population.