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Which of the Following Is True of the Dodd-Frank Act

Question 10

Multiple Choice

Which of the following is true of the Dodd-Frank Act with regard to derivatives?


A) The Dodd-Frank statute will standardize derivatives traded on exchanges to decrease transparency.
B) Derivatives must be routed through a subsidiary to ensure that companies using them post collateral.
C) Banks can continue to trade derivatives in-house based on interest rates and foreign exchanges, and for purposes of hedging risk.
D) Banks will have to spin off their riskier derivatives and trade them through a clearing house.

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