Under the Dodd-Frank Act of 2010, derivatives:
A)have to be bought and sold in open, transparent markets so that there is a limit to the invisible risk that financial traders can assume.
B)are prohibited.
C)may be purchased and sold in foreign markets only.
D)may be purchased and sold only by state and local governments.

Question

Quizplus · Accepted Answer

The Dodd-Frank Act of 2010 requires that derivatives be traded in open, transparent markets to limit the amount of invisible risk that financial traders can assume. The goal is to increase transparency and reduce the likelihood of another financial crisis like the one that occurred in 2008.

Under the Dodd-Frank Act of 2010, Derivatives