Other questions in this quiz

2. How have CCPs impacted counterparty risks in the derivatives market?

  • It has not had any noticeable impact.
  • Wider use of CCPs has served to greatly reduce counterparty risk exposures.
  • CCPs have forced weaker counterparties away from the market, which is now only available to the strongest credits.
  • Wider use of CCPs is considered to have greatly increased systemic counterparty risk.

3. Are interest rate swaps a type of derivative?

  • No, because they are off-balance sheet instruments for most users.
  • No, because they are a security
  • Perhaps not in the very strictest sense but, for practical purposes, they are usually included in the category.
  • Yes, they are very similar to short-term rate futures.

4. Which of the following products would you most typically expect to have the greatest sensitivity to expectations of market volatility?

  • Forwards
  • Options
  • Futures
  • Swaps

5. Which of the following best describes how the exchange-traded and OTC markets have evolved since the 2008 financial crisis?

  • Banks are now greatly disadvantaged in terms of regulatory capital when using exchange traded products as compared to OTC.
  • The infrastructure of OTC markets has moved a long way toward convergence with that of exchange-traded markets.
  • Most OTC products have been made illegal since the crisis.

Comments

No comments have yet been made

Similar Other resources:

See all Other resources »See all Discover 1 resources »