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Question
What is a swap?
A. An agreement between two parties to exchange assets or a series of cash flows for a specific period of time at a specified interval.
B. An agreement between a buyer and a seller at time 0 to exchange a nonstandardized asset for cash at some future date.
C. A contract that gives the holder the right, but not the obligation to buy or sell the underlying asset at a specified price within a specified period of time.
D. Trading in securities prior to their actual issue.
E. Contractual commitment to make a loan up to a stated amount at a given interest rate in the future.
Answer
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Related questions
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The Insurance Regulatory Information System (IRIS) is a standardized examination system used to measure the profitability of insurance companies.
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The two policy categories offered by property-casualty insurers that are most likely to be subject to rate regulation are
A. auto insurance and worker's compensation.
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C. earthquake and flood.
D. surety bonds and financial guaranty.
E. product liability and farm owner multiple peril.
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The McCarran-Ferguson Act of 1945
A. separated commercial banking from insurance activities.
B. mandated federal insurance company charters.
C. stipulated that insurance companies are to be regulated at the state level.
D. initiated a national insurance guaranty fund.
E. limited insurance company assets to low risk government securities.
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The surrender value of an insurance policy is
A. the expected payment commitment on existing policy contracts.
B. a fund established and held separately from the company's other assets.
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D. the same as the endowment payout.
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D. endowment life.
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Which of the following is NOT considered a trading activity of securities firms?
A. Position trading.
B. Pure arbitrage.
C. Liquidity trading.
D. Risk arbitrage trading.
E. Program trading.
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A corporate venture capital firm
A. has publicly-traded common stock.
B. provides equity funds to companies that already have publicly traded common stock.
C. is a subsidiary of a nonfinancial corporation.
D. provides debt funding to only to established corporations.
E. is subject to more stringent disclosure requirements than other venture capital firms.
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Which of the following would be a key area of activity for an investment bank specializing in the commercial side of the business?
A. Purchase of existing securities.
B. Sale of securities in the secondary market.
C. Brokerage of existing securities.
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