Instruments Which Provide Payments to Holders of Bonds in the Event

question 76

Multiple Choice

Instruments which provide payments to holders of bonds in the event of default are known as ________.

• A)collateralized bond obligations
• B)tertiary payment devices
• C)credit default swaps
• D)mortgage-backed securities

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Definitions:

Unemployment Insurance Program

A government program that provides temporary financial assistance to individuals who have lost their jobs through no fault of their own.

Social Security Act

A law enacted in 1935 in the United States to provide for the general welfare by establishing a system of federal old-age benefits, and by enabling the states to make more adequate provision for aged persons, blind persons, dependent and crippled children, maternal and child welfare, public health, and the administration of their unemployment compensation laws.

Funded

Having financial resources or support provided, typically for a project or initiative.

Equal Employment Opportunity

Laws and policies that prohibit discrimination against employees or job applicants based on race, color, religion, sex, national origin, age, disability, or genetic information.