Question
Which of the following can be used for risk shifting?
ĀSolution
Risk shifting involves changingĀ (āshiftingā) the distribution of risky outcomes. It is different from Risk transfer which is passing on (ātransferringā) risk to a third party. Both are risk mitigation strategies. Risk shifting is possible through the use of derivatives. For example, financial firms that do not want to bear currency risk on some foreign currency-denominated debt securities can use forward contracts or swaps to reduce or eliminate that risk. This is the way of changing the distribution of possible outcomes which is done through derivatives. Note - In some cases, risk transfer and risk shifting is also used interchangeably.
Which of the following statements is/are not true with respect to the amnesty scheme launched by the Finance Ministry for filing appeals against GST dem...
Which ISRO-launched mission is significant for Indiaās future plans like manned lunar missions and an Indian space station?
In which Indian state is the Pench Tiger Reserve (PTR) located, recently designated as India's first Dark Sky park?
When the President of India keeps a bill (except money bill and constitutional amendment bill) pending for an indefinite period, it is called ________.
In which event did Emma McKeon win her final Olympic gold medal at Paris 2024?
Which two organizations signed an MoU to establish Jan Aushadhi Kendras in coalfield areas?
- As per Stanford AI Index 2025, what is Indiaās Year-on-Year (YoY) AI talent growth?
Which bankĀ announced the introduction of its all-new Privy League programme, an exclusive premium banking programme with unique lifestyle benefits and...
What percentage weight is assigned to the āusageā parameter in the RBIās Financial Inclusion Index?
What is the primary goal of the 'Project Collaboration Agreement' between the Ministry of Ayush and the World Health Organization (WHO)?
