Given a text T, and several options, according to the question posed in the text T to choose the most appropriate option from the options as the answer, please directly output the most appropriate option, do not need to output the explanation.

Ivan Paulinic, an analyst at a large wealth management firm, meets with his supervisor to discuss adding financial institution equity securities to client portfolios. Paulinic focuses on Vermillion Insurance (Vermillion), a property and casualty company, and Cobalt Life Insurance (Cobalt). To evaluate Vermillion further, Paulinic compiles the information presented in Exhibit 1.
| Exhibit 1Select Financial Ratios for Vermillion Insurance |
| Ratio | 2017 | 2016 |
| Loss and loss adjustment expense | 59.1% | 61.3% |
| Underwriting expense | 36.3% | 35.8% |
| Combined | 95.4% | 97.1% |
| Dividend | 2.8% | 2.6% |


In addition to the insurance companies, Paulinic gathers data on three national banks that meet initial selection criteria but require further review. This information is shown in Exhibits 2, 3, and 4.
| Focusing on N-bank and T-bank， Paul nic prepares the following data. |
| Exhibit 32017 Select Data for N-bank and T-bank |
| N-bankT-bank |

| Exhibit 2Select Balance Sheet Data for National Banks-Trading |
| Bank | 2017 | 2013 | 2009 | 2005 |
| N-bank | 4.2% | 7.0% | 10.1% | 8.9% |
| R-bank | 8.3% | 9.1% | 17.0% | 7.9% |
| T-bank | 5.0% | 5.0% | 11.9% | 6.8% |


Paulinic investigates R-bank’s risk management practices with respect to the use of credit derivatives to enhance earnings, following the 2008 financial crisis. Exhibit 4 displays R-bank’s exposure over the last decade to credit derivatives not classified as hedges.
|  |
| Exhibit 4R-bank's Exposure to Freestanding Credit Derivatives |

| Credit Derivative Balances | 2017 | 2012 | 2007 |
| Notional amount($bl lions) | 13.4 | 15.5 | 305.1 |


All of the national banks under consideration primarily make long-term loans and source a significant portion of their funding from retail deposits. Paulinic and the rest of the research team note that the central bank is unwinding a long period of monetary easing as evidenced by two recent increases in the overnight funding rate. Paulinic informs his supervisor that: Statement 1 Given the recently reported stronger-than-anticipated macro- economic data, there is an imminent risk that the yield curve will invert. Statement 2 N-bank is very active in the 30-day reverse repurchase agree- ment market during times when the bank experiences significant increases in retail deposits.
Based only on Exhibit 4, R-bank’s use of credit derivatives since 2007 most likely:
Option A:increased posted collateral.
Option B:decreased the volatility of earnings from trading activities.
Option C:indicates consistent correlations among the relevant risks taken.

Answer: B