The use of financial derivatives by financial institutions to hedge can decrease risk. However, they can also increase risk. Which of the following examples illustrates this?

A) Financial derivatives allow financial institutions to increase their leverage.
B) Some institutions such huge amounts of derivatives that the amounts exceed capital.
C) All of the above are valid examples.
D) None of the above are valid examples.


C

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Indicate whether the statement is true or false

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Worker’s compensation insurance rates are determined by all factors EXCEPT:

A. the risk of occupation B. the frequency and severity of past claims C. past judge and jury awards to victims D. level of benefit payable, based on state regulations E. None of the above

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a. True b. False Indicate whether the statement is true or false

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The voluntary mutual surrender and discharge of each party's contractual rights under a contract is called ____________________

Fill in the blank(s) with correct word

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