By March 2008, the Notational Value of Credit Derivative Products

question 18

Multiple Choice

By March 2008, the notational value of credit derivative products in the commercial banking industry hit its peak at approximately $16.44 trillion.By September 2011, the notational value of these products was approximately

• A)$8.9 trillion.
• B)$10.6 trillion.
• C)$13.6 trillion.
• D)$15.7 trillion.
• E)$18.1 trillion.

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Definitions:

Treasury Stock

Refers to shares that were once part of the outstanding shares but were bought back by the company, reducing the amount of stock on the open market.

Par Value

A nominal value of a security, such as a bond or stock, which is set by the issuing company and does not necessarily reflect its market value.

Corporate Form

A legal structure for organizations that treats the business as a separate entity from its owners, providing limited liability protection.

Business Organization

A legally recognized entity established to conduct commercial activities, ranging from sole proprietorships to corporations.