The 1999 ISDA Credit Derivatives Definitions (Referred to as the "1999

question 7

Multiple Choice

The 1999 ISDA Credit Derivatives Definitions (referred to as the "1999 Definitions") provides a list of eight credit events: Which of the below includes three of these eight credit events?

• A) bankruptcy, credit event upon merger, and cross deceleration.
• B) cross hedge, downgrade, and failure to pay.
• C) repudiation / moratorium, restructuring, and cross default.
• D) repudiation / natatorium, bankruptcy, and failure to pay.

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Definitions:

Favorable

A term used in accounting and finance to describe outcomes or variances that are better than anticipated, indicating a positive performance against the budget or forecast.

Unfavorable

A term used to describe a variance or outcome that results in a worse financial position than expected or budgeted.

Labor Rate Variance

The difference between the actual labor costs incurred and the expected (or standard) labor costs, often due to paying a higher or lower wage rate than planned.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected (standard) variable overhead allocated based on activity levels.