Which Statement Is INCORRECT Regarding ISDA

question 3

Multiple Choice

Which statement is INCORRECT regarding ISDA?

• A) Originally founded as the International Swap Dealers Association,ISDA was later renamed the International Swaps and Derivatives Association to reflect its broader scope.
• B) ISDA published standardized documents known as master agreements to facilitate trading of over-the-counter derivatives contracts.
• C) ISDA lowers credit risk by guaranteeing contract performance to the counterparties.
• D) An ISDA master agreement has two parts: a preprinted form that cannot be amended,and a schedule that allows the two counterparties to note changes and amend some provisions on the printed form.
• E) ISDA periodically updates master agreements to reflect changing market conditions.

---

Definitions:

Behavior Approach

A method in psychology and management focusing on observable behaviors and the external stimuli that influence them, as opposed to internal thought processes.

Managers

Individuals responsible for planning, directing, and overseeing the operations and employees within an organization.

Exclusively

Refers to something being limited to or applicable only for a certain condition or situation.

Even-Handed Explanation

An impartial and balanced description or reasoning that does not favor one side over another.