The uniform guidelines for banks that trade in futures and forwards require a bank to:
A)establish internal guidelines regarding its hedging activity.
B)establish trading limits.
C)disclose large contract positions that materially affect bank risk to shareholders and outside investors.
D)None of the above statements.
E)All of the above statements.

Question

Quizplus · Accepted Answer

The uniform guidelines for banks that trade in futures and forwards require a bank to establish internal guidelines regarding its hedging activity, establish trading limits, and disclose large contract positions that materially affect bank risk to shareholders and outside investors. Therefore, all the statements A, B, and C are correct, making E the best choice.

The Uniform Guidelines for Banks That Trade in Futures and Forwards