8010 Exam Dumps | Which of the following can be used to reduce credit exposures to a counterparty: I. Netting arrangements

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PRMIA.8010.v2022-06-27.q87
Question 58

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Question 58/87

Which of the following can be used to reduce credit exposures to a counterparty:
I. Netting arrangements
II. Collateral requirements
III. Offsetting tradeswith other counterparties
IV. Credit default swaps

A. I and II

B. I, II, III and IV

C. I, II and IV

D. III and IV

Correct Answer: C

Explanation
Offsetting trades with other counterparties will not reduce credit exposure to a given counterparty. All other choices represent means of reducing credit risk. Therefore Choice 'c' is the correct answer.

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