ABC and ABC's client, Repo Co., would likely have resulted in a reduction in:
A. ABC's funding liquidity risk.
B. Repo Co.'s default risk.
C. XYZ's lending risk.
D. ABC's operational risk.
Answer:D
ABC and ABC's client, Repo Co., would likely have resulted in a reduction in:
A. ABC's funding liquidity risk. B. Repo Co.'s default risk. C. XYZ's lending risk. D. ABC's operational risk.
Explanation: If it uses a clearinghouse and the clearinghouse makes a mistake (operational risk) like that