A Haircut of 20% Means That

question 15

Multiple Choice

A haircut of 20% means that

• A) A bond with a market value of $100 is considered to be worth $80 when used to satisfy a collateral request
• B) A bond with a face value of $100 is considered to be worth $80 when used to satisfy a collateral request
• C) A bond with a market value of $100 is considered to be worth $83.3 when used to satisfy a collateral request
• D) A bond with a face value of $100 is considered to be worth $83.3 when used to satisfy a collateral request

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Definitions:

Delegation

The process of assigning responsibility and authority to someone else to carry out specific activities, while the person delegating retains overall responsibility for the outcome.

Management Techniques

Methods and strategies used by leaders and managers to increase efficiency, effectiveness, and to achieve organizational goals.

Takeoff Stage

A phase in economic development or in the growth of a business when rapid growth is initiated, often following a period of investment or innovation.

Single Department

Refers to a unit or division within an organization that focuses on a specific area of operation or function.