ACI
3I0-012 · Question #352
Taking collateral to hedge the credit risk on a counterparty means that you have:
The correct answer is D. Taken on market, legal and operational risks. See the full explanation below for the reasoning.
Question
Taking collateral to hedge the credit risk on a counterparty means that you have:
Options
- AEliminated credit risk
- BEliminated market risk
- CTaken a guarantee from the issuer of the collateral
- DTaken on market, legal and operational risks
How the community answered
(30 responses)- A13% (4)
- B7% (2)
- C3% (1)
- D77% (23)
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