Risk is especially intensified in financial claims because
A)it is unwise to hedge interest rates.
B)the Eurodollar market is highly volatile.
C)payments from one party to another are usually dependent upon payments from third parties.
D)of deposit insurance.

Question

Quizplus · Accepted Answer

Financial claims often involve multiple parties and dependencies, increasing the risk of default or delayed payments. This is especially true when payments are dependent upon payments from third parties, which can introduce additional uncertainties and delays. The other choices are unrelated or incorrect.

Risk Is Especially Intensified in Financial Claims Because