How do exchanges protect themselves from counterparty risk?
What will be an ideal response?
Exchanges protect themselves by requiring up-front margin and also marking contracts to market each day.
You might also like to view...
Which of the following is representative of safeguarding assets?
A) attaching electronic sensors to merchandise inventory B) reducing expenses to increase operating profit C) increasing operating profit to increase net income D) allowing company accountants to handle cash
______ is the unconscious process of making decisions based on imagination and possibilities.
A. Anchoring B. Satisficing C. Bias D. Intuition
Which of the following statements is true of Section 201 of the Sarbanes-Oxley Act?
A. It provides the codes of ethics for senior financial officers. B. It requires a company's management to file an internal control report with its annual report each year. C. It mandates that members of public company audit committees should be independents with a total absence of current or prior business relationships. D. It prohibits various forms of professional services that are determined to be consulting rather than auditing.
Random fluctuations in business are usually caused by factors well within management's control
Indicate whether the statement is true or false