In the event that the investment firm defaults, what would be the loss to the bank if netting is used?
A. USD 0 million
B. USD 12 million
C. USD 21 million
D. USD 33 million
Answer:C
In the event that the investment firm defaults, what would be the loss to the bank if netting is used?
A. USD 0 million B. USD 12 million C. USD 21 million D. USD 33 million
Explanation: Netting means that the payments between the two counterparties are netted out, so that only a