Why Are the Regular GNMA Pass-Through Not Very Attractive to Insurance

question 91

Multiple Choice

Why are the regular GNMA pass-through not very attractive to insurance companies and pension funds seeking long-term duration assets to match their long-term duration liabilities?

• A)Because of their short expected duration.
• B)Because these bonds have the shortest average life with a maximum of prepayment protection.
• C)Because they are zero coupon bonds and hence carry maximum amount of risk.
• D)Because of their failures to offer prepayment protection.

Identify the enforceability of arbitration clauses in various contexts, including employment and consumer contracts.

Differentiate between mediation and arbitration and understand situations where each is applicable.

Recognize the limitations and criticisms of arbitration.

Understand the role and legal effect of the Uniform Mediation Act.

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Definitions:

Accounts Receivable

Money owed by customers to a company for goods or services that have been delivered but not yet paid for.

Inventory Turnover

A financial metric measuring the rate at which a company sells and replaces its stock of goods during a given period.

Cost of Goods Sold

Represents the direct costs attributable to the production of goods sold by a company, including materials and labor.

Return on Equity

A measure of a corporation’s profitability that reveals how much profit a company generates with the money shareholders have invested.