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
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Which of the following is NOT one of the advantages to incremental profits of a loyal customer?
a. Profit from increased purchases. b. Profit from decreased advertising. c. Profit from reduced operating costs. d. Profit from referrals to other customers. e. Profit from price premiums.
A competitive environment where there is weak to moderate rivalry among sellers, high entry barriers, weak competition from substitute products, and little bargaining leverage on the part of both suppliers and customers
A. lacks powerful driving forces. B. is conducive to industry members earning attractive profits. C. makes it challenging for industry members to compete successfully unless they can strongly differentiate their products. D. gives each industry competitor the best potential for building sustainable competitive advantage over rival firms. E. requires that industry members have low costs in order to be competitively successful.
Which of the following statements is false?
A) The motor truck cargo insurance protects the interest of the trucking companies. B) Federal law requires trucks traveling across state lines to have at least $1.5 million in liability insurance. C) The peril causing the largest amount of inland marine losses is theft. D) Inland marine insurance developed because commerce in the U.S. moved inland.
In comparing credit cards to other forms of credit, which of the following is true?
A) Credit cards are generally the most expensive form of credit. B) You should invest funds before paying off your credit cards. C) It is prudent to borrow from some cards to pay off other credit cards. D) All of the above.