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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.
On high temperatures, gas-melt rock content located below the surface of the Earth is called __________________
The Rajasthan Government launched the 512 new Indira Rasoi from which place, in September 2022?
Lata Mangeshkar was awarded by the India's highest civilian honour 'Bharat Ratna' in the year _____________.
In June 2020, the Central government approved an Ordinance to bring all urban and multi-state cooperative banks under the direct supervision of RBI. In...
Which Indian state launched the "Yuba Tripura, Natun Tripura, Atmanirbhar Tripura" initiative to encourage youth in industrial and business activi...
Who among the following was the recipient of the Infosys Prize 2019 for Humanities?
Which of the following provisions of the Indian Constitution can be amended only by the general majority of the two Houses in the Parliament?
Who among the following was the recipient of Sangeet Natak Akademi Award 2017 for Kuchipudi?
Which part of the soil contains humus?
What is the primary purpose of the SEWA Portal introduced by the Indian government?