An SIV,or Structured Investment Vehicle,is an Off-Balance-Sheet Entity That Shields

question 56

Multiple Choice

An SIV,or structured investment vehicle,is an off-balance-sheet entity that shields a sponsoring institution from risk.What happened to some of these SIVs when they ran into financial problems?

• A) The SIV sued the sponsoring institution to pay, in full, all liabilities of the SIV.
• B) The SIV still remained off-balance-sheet, but investors did sue sponsoring institutions.
• C) Nothing! The SIV status as off-balance-sheet remained, a nice example of a financial structure that worked during the financial crisis.
• D) Troubled SIVs became an asset of the sponsoring institution - the off-balance-sheet status was meaningless.

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Definitions:

Hyperactive

Characterized by more movement and activity than is typical or desirable, often to the point of being disruptive, as in certain attention disorders.

Disruptive Mood Dysregulation Disorder

Disruptive Mood Dysregulation Disorder is a mental health condition characterized by severe and recurrent temper outbursts that are disproportionate to the situation.

Major Depressive Disorder

A mental health disorder characterized by persistent and intense feelings of sadness and despair that affect functioning.

Mania

A hyperactive, wildly optimistic state in which dangerously poor judgment is common.