Which of the Following Statements Is (Are)true with Respect to Catastrophe

question 38

Multiple Choice

Which of the following statements is (are) true with respect to catastrophe bonds?
I.The bonds are issued by policyowners of the insurer.
II.The bonds have relatively high interest (coupon) rates.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Securities

Financial instruments that represent either ownership (as in the case of equities) or a debt agreement (as in the case of bonds) with the individual or corporate entity that issues them.

Federal Reserve Board

The governing body of the Federal Reserve System, responsible for overseeing the United States' central banking system and setting monetary policy.

Chairman

A person appointed or elected to preside over a meeting, board, or committee.

President

The head of state and head of government in a republic, typically elected to lead the country's executive branch and implement national laws and policies.