Use the Following Two Choices to Identify Whether Each Intermediary

question 64

Multiple Choice

Use the following two choices to identify whether each intermediary or entity is a net buyer or net seller of credit derivative securities.
Pension funds

• A)Net buyer (typically)
• B)Net seller (typically)

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Definitions:

Public Saving

The difference between government receipts and government spending, representing the amount the government either saves or borrows.

Positive

In economics, referring to statements or analyses that are fact-based and describe the world as it is, rather than how it should be.

Budget Deficit

Occurs when a government spends more money than it receives in revenue over a specific period of time.

Public Savings

The difference between government revenue and government spending, representing a net saving or borrowing position.