Question
Which of the following can be used for risk shifting?
Solution
Risk shifting involves changing (“shifting”) the distribution of risky outcomes. It is different from Risk transfer which is passing on (“transferring”) 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.
The Etawah Pilot Project is known for being:
What is the scientific name of Barley?
Absorptive organ in plant embryo
Under DAY NRLM, what is the limit of collateral free loan for SHGs?
Which instrument is used to measure wind speed?
Sclerotinia sclerotiorum survives in soil in the form of:
Which nutrient is regarded essential for protein synthesis in plant cells ?
Concentration of which of the following is high in soil?
Which one of the following is the plant part through which Napier grass is multiplied?
Which legume crop is best suited as a summer catch crop in northern India after harvest of wheat to utilize residual moisture?