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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 compound having highest boiling point among the following is-
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The specialized agency of the United Nations that works towards defeating hunger via international effort i.e. FAO has its headqua...
Which of the following is not a C 4 plant?
Which is an oxygen absorber in active packaging
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Which statement is not correct about Law of Demand?
Site for protein synthesis is _______
Which of the following is not a micronutrient?
What is the term for permanent tissues that consist of many different types of cells with specialized functions?