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The Risk That the Firm Will Not Have,or Be Able

question 12

Multiple Choice

The risk that the firm will not have,or be able to raise,the cash required to meet the margin calls on its hedges is called:


Definitions:

Encoding

The process by which information is transformed into a format that can be stored in memory.

Rehearsal

The cognitive process of repeating information over and over to aid in its retention and recall.

Egocentric

The cognitive inability to understand that other people have different perspectives, feelings, and experiences from one's own.

Flexible

The quality of being able to adapt to new, different, or changing requirements and situations.

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