In the Case of a Financial Institution That Seeks to Make

Multiple Choice

In the case of a financial institution that seeks to make a market in the new CRT vehicles, there is a concern that in selling more complex products, such as synthetic CDOs, they may not be properly hedging their position and therefore ________.

A) maintaining the institution's risk.
B) decreasing the institution's risk.
C) increasing the institution's risk.
D) All of these