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      Question

      How are collateral deposits actively placed with Central

      Counterparties (CCPs) treated under large exposure rules?
      A They are assigned an automatic 0 value for concentration reporting Correct Answer Incorrect Answer
      B They are subtracted from standalone solo capital calculations entirely Correct Answer Incorrect Answer
      C They must be fully reckoned and counted toward calculating the exposure limit Correct Answer Incorrect Answer
      D They are handled as off-balance sheet items carrying a mandatory 20% CCF Correct Answer Incorrect Answer
      E They are categorized as exempted exposures under sovereign parameters Correct Answer Incorrect Answer

      Solution

      While derivative trade values with a CCP can be zeroed out, any actual collateral margin or asset deposits held with a CCP are not zero-valued; they must be fully counted and factored in when tracking exposure limits against that CCP.

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