Which of the Following Is True of an Agent

question 93

Multiple Choice

Which of the following is true of an agent?

• A) The authorization to represent the company has to be in writing.
• B) The agent's statements cannot legally bind his or her company.
• C) A person who acts in place of his or her company is an agent.
• D) The actions of an agent do not have any financial impact on the company.
• E) None of the above.

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Definitions:

Collateralized Debt Obligation

A complex structured finance product that pools together cash flow-generating assets and repackages this asset pool into tranches that can be sold to investors.

CDO

Collateralized Debt Obligation, a type of structured asset-backed security (ABS) with multiple tranches that is issued by special purpose entities and collateralized by debt obligations.

Zero-Coupon Bond

A bond that does not pay periodic interest payments and is instead issued at a significant discount to its face value and pays its full face value at maturity.

Yield To Maturity

The total return anticipated on a bond if it is held until its maturity date, taking into account its current market price, par value, coupon interest rate, and time to maturity.