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The Biggest Danger of Financial Derivatives Occurs

Question 90

Multiple Choice
The biggest danger of financial derivatives occurs
A) when notional amounts exceed a bank's capital.
B) when financial market prices and rates are highly volatile.
C) in the trading activities of financial institutions.
D) in the large amount of credit exposure.

The biggest danger of financial derivatives occurs


A) when notional amounts exceed a bank's capital.
B) when financial market prices and rates are highly volatile.
C) in the trading activities of financial institutions.
D) in the large amount of credit exposure.

Correct Answer:

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