Question

One issue that arose in the past with the use of derivatives was a lack of oversight. How can that be remedied?

a) Increased regulation
b) Enhanced monitoring
c) Improved transparency
d) All of the above

Answer 1

The lack of oversight with the use of derivatives in the past can be addressed through increased regulation, enhanced monitoring, and improved transparency. These measures aim to promote responsible use and accountability.

Step-by-step explanation:

The issue of lack of oversight in the past with the use of derivatives can be remedied through a combination of measures, including increased regulation, enhanced monitoring, and improved transparency. These measures work together to ensure that there is proper supervision and accountability in the use of derivatives.

Increased regulation involves implementing stricter rules and guidelines for the use of derivatives, which can help prevent abuse and misuse. Enhanced monitoring refers to actively monitoring and evaluating the use of derivatives to detect any potential risks or issues. Improved transparency means providing more information and disclosures about the use of derivatives, allowing stakeholders to have a clearer understanding of the risks involved.

By implementing all of these measures, we can address the issue of lack of oversight and promote responsible and informed use of derivatives.