Which of the Following Is an Advantage of Credit Swaps

question 99

Multiple Choice

Which of the following is an advantage of credit swaps for each partner?

• A)Broaden the number of markets
• B)Broaden the variety of markets from which they collect loan revenues and principal
• C)Spread out the risk in the loan portfolio
• D)Avoiding capital requirements
• E)Options A,B,and C are all advantages of a credit swap for each partner.

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Definitions:

Resting Potential

Electrical charge across the insulating cell membrane in the absence of stimulation; a store of potential energy produced by a greater negative charge on the intracellular side relative to the extracellular side.

Hyperpolarization

An increase in a cell's membrane potential, making it more negative and decreasing the likelihood of generating an action potential.

Semipermeable Membrane

A barrier that allows certain molecules or ions to pass through it by diffusion while blocking others, often used in osmosis.

Sodium-Potassium Pump

A type of active transport mechanism that moves sodium ions out of and potassium ions into cells, essential for maintaining cell potential and volume.