A valid concern about financial derivatives is that
A) they allow financial institutions to increase their leverage.
B) they are too sophisticated because they are so complicated.
C) the notional amounts can greatly exceed a financial institution's capital.
D) all of the above are valid concerns.
E) none of the above are valid concerns.

Question

Quizplus · Accepted Answer

The Answer of A valid concern about financial derivatives is that
A) they allow financial institutions to increase their leverage.
B) they are too sophisticated because they are so complicated.
C) the notional amounts can greatly exceed a financial institution's capital.
D) all of the above are valid concerns.
E) none of the above are valid concerns.

A Valid Concern About Financial Derivatives Is That