Which of the Following Are Potentially Subject to Risk-Based Capital

question 49

Multiple Choice

Which of the following are potentially subject to risk-based capital requirements?

• A)Swaps and futures
• B)Swaps and forwards
• C)Forwards and futures
• D)Purchased option positions and futures
• E)Purchased option positions and swaps

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Definitions:

Planning Budget

An initial budget prepared based on estimates of what revenues and costs should be before a period begins, often used for setting goals and objectives.

Net Operating Income

The income earned by a company from its main business activities before subtracting interest and tax expenses.

Revenue and Spending Variance

The difference between the actual and budgeted figures for both revenue and expenses, indicating a company's financial performance.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing for better performance evaluation.