The Life Span of an SPV (Special Purpose Vehicle) Is

question 26

Multiple Choice

The life span of an SPV (Special Purpose Vehicle) is limited to

• A)the life of the sponsoring FI.
• B)the duration of its liabilities.
• C)the life of the asset-backed security that it created from the loans in its portfolio.
• D)the life is unlimited as it can exist beyond its initial purpose.
• E)the duration the Federal Reserve determines.

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Definitions:

Countercyclical Payments

Payments made by the government to counteract economic downturns, aimed at stabilizing the economy by increasing spending during low periods.

Farm Commodities

Basic agricultural products that are used both for consumption and as inputs in the production of other goods.

Food Products

Food products encompass items that are processed, prepared, and packaged to be consumed as meals or snacks.

Price Elasticity Coefficient

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating sensitivity to price changes.