In Regards to a Structured Finance Operating Company (SFOC), Which

question 15

Multiple Choice

In regards to a structured finance operating company (SFOC) , which of the below statements is FALSE?

• A) An SFOC sounds much like an arbitrage CDO since both use borrowed funds to generate a return from investing in a pool of credit-risky assets.
• B) There is only one type of SFOC.
• C) Unlike a CDO, the manager of an SFOC can increase or decrease its leverage based on its expectation about factors that impact the return on its portfolio.
• D) The most popular type of SFOC is the structured investment vehicle (SIV).

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Definitions:

Spanish Reconquista

The period from the 8th to the 15th century during which Christian kingdoms in the Iberian Peninsula reconquered territory from Muslim rulers.

Aztec Empire

A Mesoamerican empire that flourished in central Mexico in the 14th, 15th, and early 16th centuries, known for its sophisticated civilization, architectural achievements, and complex social structure before falling to Spanish conquerors.

Hernán Cortés

A Spanish Conquistador known for his expedition that led to the fall of the Aztec Empire and the establishment of Mexico City on its ruins.

Bartolome De Las Casas

A 16th-century Spanish historian and Dominican friar who became the first known advocate for the rights of indigenous people in the Americas, and opposed the abuses of the Spanish encomienda system.