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A Valid Concern About Financial Derivatives Is That

Question 78

Multiple Choice
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


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.

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