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Question
Which of the following is NOT true?
A. FI bearing the credit risk of a loan is often different from the FI that issued the loan.
B. The buyer of a credit swap makes periodic payments to the seller until the end of the life of the swap.
C. Banks have been more willing than the insurance companies to bear credit risk.
D. The settlement of the swap in the event of a default involves either physical delivery of the bonds or a cash payment.
E. Credit swap specifies the number of different bonds that can be delivered in the event of a default.
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
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B. homeowner multiple peril and commercial multiple peril.
C. earthquake and flood.
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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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A. the expected payment commitment on existing policy contracts.
B. a fund established and held separately from the company's other assets.
C. the cash value paid to the policyholder if the policy is terminated before it matures.
D. the same as the endowment payout.
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A. Position trading.
B. Pure arbitrage.
C. Liquidity trading.
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E. Program trading.
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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.
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