Which of the Following Is NOT True

question 83

Multiple Choice

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.

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Definitions:

Link Method

The Link Method is a mnemonic technique that involves creating associations between items in a list by visually or conceptually linking them together to improve memory.

Acronym Method

A mnemonic device using the initial letters of words in a phrase or series of words to form a name or term, aiding in memory recall.

Functional Amnesia

A psychological disorder characterized by the sudden inability to recall important personal information, typically following severe stress or trauma, which cannot be explained by ordinary forgetfulness.

Anterograde Amnesia

The inability to form new memories following the event that caused the amnesia, even though the ability to recall past events may remain intact.