The Advantage of a Credit Swap Is That It Allows

question 21

True/False

The advantage of a credit swap is that it allows each bank in the swap to broaden its market area and spread out its credit risk on its loans.

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Definitions:

Assigns

Individuals or entities to whom rights or properties are legally transferred or assigned.

Further Obligations

Additional duties or responsibilities that may be required from a party subsequent to the completion of a particular transaction or event.

Community Property

A form of ownership between married couples commonly found in some states where all property acquired during the marriage is considered equally owned by both spouses.

Prior to Marriage

The period or conditions that exist before the legal union of two individuals as partners in a personal relationship.