Which of the Below Statements Is TRUE

question 17

Multiple Choice

Which of the below statements is TRUE?

• A) Typically when amortizing assets are not securitized, the collateral is fixed over the life of the structure.
• B) To deal with situations where there may be a match between the cash flow characteristics of the asset and the liabilities, interest rate derivative instruments are used in a securitization
• C) The assets that are securitized can have a fixed rate or a floating rate.
• D) If the reference rate for the floating-rate bond classes decreases sufficiently, there could be a shortfall between the interest received from the collateral and the aggregate interest payment that must be made to the bond classes.

Differentiate between cheques, bills of exchange, and promissory notes in terms of form, use, and legal treatment.

Understand defenses available to makers of bills of exchange and their limitations against a holder in due course.

Analyze the conditions under which an instrument may or may not qualify as a bill of exchange or promissory note under specific stipulations.

Grasp the constitutional jurisdiction over the governance of negotiable instruments.

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Definitions:

Knowledge Gap

The difference in understanding, information, or knowledge between individuals, groups, or data sets.

Zone of Tolerance

The range of service levels between the desired and adequate performance levels of customers, within which customers are willing to accept variations in service quality.

Service Delivery

The act of providing a service to customers or clients, encompassing the processes and interactions to meet their needs.

Communication Gap

A discrepancy or barrier in understanding between what is said and what is understood, often leading to misinterpretation or conflict.