Which of the Following Is NOT a Reason That a Swap

question 27

Multiple Choice

Which of the following is NOT a reason that a swap may have less credit risk than an individual loan?

• A)Netting of payments.
• B)Payment flows are interest and not principal.
• C)Standby letters of credit are available.
• D)Swaps can be cancelled,individual loans cannot.

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Definitions:

Global Organizations

are businesses or enterprises that operate in multiple countries around the world, facing challenges and opportunities from diverse cultures, legal systems, and market dynamics.

Team-Based Organizational Structure

An organizational layout where tasks and responsibilities are allocated to groups rather than individuals, fostering collaboration.

Flat Organizational Hierarchy

is a structure where there are few or no levels of middle management between staff and executives, often leading to faster decision-making and increased flexibility.

Formalization

The degree of adherence to structured policies, procedures, and guidelines within an organization, contributing to consistency and predictability of actions.