A Bank That Wants to Protect Itself from Higher Borrowing

question 108

Multiple Choice

A bank that wants to protect itself from higher borrowing costs due to a decrease in its credit rating might purchase:

• A)a credit risk option.
• B)a standby letter of credit.
• C)a credit linked note.
• D)a credit swap.
• E)None of the options is correct

---

Definitions:

Novels

Literary works of fiction that are usually long and narrate a structured story or stories involving characters, plots, and settings.

Second New Deal

A phase of the New Deal programs initiated by President Franklin D. Roosevelt in 1935 aimed at economic recovery, introducing social welfare benefits, labor rights, and financial reforms.

Mass Purchasing Power

The aggregated financial ability of the population or consumers to buy goods and services.

Employment

The condition of having paid work or the process of hiring someone for a job.