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Misuse of Derivative Contracts Caused the Failure of Barings Bank

Question 65

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Misuse of derivative contracts caused the failure of Barings bank and the near-collapse of Long-Term Capital Management. As a result of these (and other) examples, the following things have happened:


A) All new derivatives traders will be licensed by the World Bank
B) The Federal Reserve is regulating derivatives sales over $1 million
C) Creditors and counterparties have intensified their oversight and risk analysis of derivatives activities within their financial institutions
D) All of the above none of the above

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