A Credit Forward Is a Forward Agreement That

question 117

Multiple Choice

A credit forward is a forward agreement that

• A)hedges against a decrease in default risk on a loan after the loan rate is determined and the loan issued.
• B)hedges against an increase in default risk on a loan before the loan rate is determined and the loan issued.
• C)hedges against an increase in default risk on a loan after the loan rate is determined and the loan issued.
• D)hedges against a decrease in default risk on a loan before the loan rate is determined and the loan issued.
• E)hedges against an increase in default risk on a loan after the loan rate is determined and before the loan is issued.

---

Definitions:

Member Panel

A group composed of organization or community members tasked with making decisions or providing advice on specific topics or issues.

Bill Of Rights

A formal statement listing the fundamental rights and freedoms that are protected and guaranteed to all citizens.

Landrum-Griffin Act

Also known as the Labor-Management Reporting and Disclosure Act of 1959, it governs the relationship between labor unions and their members, regulating internal union affairs and union officials' responsibilities.

Union Members

Individuals who belong to a labor union, an organization that represents workers' interests, advocating for better wages, working conditions, and benefits.