Explain why trading derivatives on centralized exchanges rather than in over-the-counter markets helps to reduce systemic risk.
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 84% (13 reviews)
The presence of a centralized counterparty CCP increases transparency ...View the full answer
Answered By
Ankur Gupta
I have a degree in finance from a well-renowned university and I have been working in the financial industry for over 10 years now. I have a lot of experience in financial management, and I have been teaching financial management courses at the university level for the past 5 years. I am extremely passionate about helping students learn and understand financial management, and I firmly believe that I have the necessary skills and knowledge to effectively tutor students in this subject.
4.80+
2+ Reviews
10+ Question Solved
Related Book For
Money Banking and Financial Markets
ISBN: 978-0078021749
4th edition
Authors: Stephen Cecchetti, Kermit Schoenholtz
Question Posted:
Students also viewed these Banking questions
-
Explain why there are concerns about systemic risk in the bond and other debt markets. Also explain how the Financial Reform Act of 2010 was intended to reduce systemic risk.
-
Explain why inherent risk is set for segments rather than for the overall audit. What is the effect on the amount of evidence the auditor must accumulate when inherent risk is increased from medium...
-
Explain why inherent risk is estimated for segments rather than for the overall audit. What is the effect on the amount of evidence the auditor must accumulate when inherent risk is increased from...
-
Solve each compound inequality. Graph the solution set, and write it using interval notation. -2x +1> -11 or x+1> 10
-
The goal is to design an elevator control system so that the elevator will move from floor to floor rapidly and stop accurately at the selected floor. The elevator will contain from one to three...
-
A heat engine is operating on a Carnot cycle and has a thermal efficiency of 55 percent. The waste heat from this engine is rejected to a nearby lake at 60°F at a rate of 800 Btu/min. Determine...
-
Two horizontal parallel conducting rods are connected such that a conducting crossbar free to slide along them has a constant current \(I\) running through it (Figure P27.34). The rods are separated...
-
Belanna Corporation began operations on December 1, 2012. The only inventory transaction in 2012 was the purchase of inventory on December 10, 2012, at a cost of $20 per unit. None of this inventory...
-
Question two (20mks) Building Societies Act is a well structured and balanced Organism that spells out different functions. Identify and describe the organization and management of building society...
-
State Bank's balance sheet is listed below. Market yields and durations (in years) are in parenthesis, and amounts are in millions. a. What is the repricing gap if the planning period is six months?...
-
How is entering into a forward contract similar to barter? Can you think of costs associated with forward contracts that are minimized or eliminated with futures contracts?
-
What are the risks and rewards of writing and buying options? Are there any circumstances under which you would get involved? Why or why not? (Hint: Think of a case in which you own shares of the...
-
If the 1.5-m-long cord AB can withstand a maximum force of 3500 N, determine the force in cord BC and the distance y so that the 200-kg crate can be supported. -2 m-
-
How does what is said and taught in classrooms affect ethical decision making by educational leaders?
-
An industrial engineer invests $100,000.00 now, and in threeyears he adds $3,000.00 to the investment. He is able to withdraw $5,000.00 the first year increasing by $1,000.00 each year for 10years....
-
Consider the Binary Dummy Variable Gender which takes the values "M" and "F". In a linear regression with the dependent variable the amount invested in stocks, Gender is interacted with Income....
-
What is the coupon rate of a eight-year, $ 5 comma 000 bond with semiannual coupons and a price of $ 4 comma 028.63, if it has a yield to maturity of 7.3%?
-
A spherical water tank of radius, R = 4 meters is emptied through a small circular hole of radius r = 0.02 meters at the bottom. The top of the tank is open to atmosphere. The instantaneous water...
-
From your own experience, identify with examples the main activities of management. What do you see as the main attribute(s) or qualities required of a manager in undertaking each of these activities?
-
What kind of financial pressures can an LBO cause?
-
Presented below is information related to Webster Company (amounts in thousands). Instructions Prepare an income statement for the year 2015. Ordinary shares outstanding for 2015 total 40,550 (in...
-
Suppose that a researcher discovers that a measure of the total amount of debt in the U.S economy over the past twenty years was a predictor of inflation and the business cycle than M1 or M2. Does...
-
Suppose that a researcher discovers that a measure of the total amount of debt in the U.S economy over the past twenty years was a predictor of inflation and the business cycle than M1 or M2. Does...
-
To pay for college, you have just taken out a $1,000 government loan that makes you pay $126 per year for 25 years. However, you dont have to start making these payments until you graduate from...
-
I am running for Vice President of Legislative Affairs at my University as part of the Student Government Association. I am need of ideas!!! Keep this in mind. My platform is centered around pushing...
-
What are some ways that synergistic communication can positively affect organizational communication? Furthermore, how does SC relate to the achieving of (or the not achieving of) the overall goals...
-
Choose an organization's website. Provide the name of the company and the URL address at the top of your answer. i) Analyze the website using THREE (3) relevant corporate communication concepts. (9%)...
Study smarter with the SolutionInn App