Which of the Following Is NOT a Reason That a Swap

question 86

Multiple Choice

Which of the following is NOT a reason that a swap may have less credit risk than an individual loan?

• A)Netting of payments.
• B)Payment flows are interest and not principal.
• C)Standby letters of credit are available.
• D)Swaps can be cancelled, individual loans cannot.
• E)None of the options.

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Definitions:

Clients' Value

The importance or benefit that clients attribute to a service or product they receive from a provider.

Social Safety Nets

Public or community services that provide support to individuals and families in need, aiming to prevent poverty and social exclusion.

Puritan Ethics

A set of moral principles emphasizing simplicity, hard work, and piety, historically associated with Puritanism.

Democratic Values

Principles that support the idea of democracy, including freedom, equality, fairness, and the rule of law.