Collateralized Default Swaps

question 169

Multiple Choice

Collateralized default swaps

• A)helped reduce the losses from the mortgage default crisis.
• B)involve exchanging high-risk mortgages for low-risk mortgage-backed securities.
• C)are loans to investors in mortgage-backed securities.
• D)insured holders of loan-backed securities in case the underlying loans were not repaid.

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Definitions:

Dependent Children

Children who are financially supported by a parent or guardian and meet specific criteria, qualifying the parent to receive tax benefits; a reiteration with emphasis on the criteria aspect.

Qualified Day Care Center

A child care facility that meets specific criteria set by the IRS to be eligible for certain tax benefits.

Full-Time Student

A status for individuals who attend an educational institution for a certain number of hours or courses as defined by the institution.

Child And Dependent Care Credit

A tax credit in the U.S. for eligible expenses related to the care of a child or dependent, making it easier for caregivers to work or look for work.