Which of the Following Is Not a Reason for the Credit

question 15

Multiple Choice

Which of the following is not a reason for the credit risk on a swap to be less than the credit risk on a loan?

• A) Swap contracts often extend beyond the maturity of normal loan contracts.
• B) Swap payments can be netted across more than on contract.
• C) Interest rate swaps involve interest, but not principal.
• D) Swap contracts often extend beyond the maturity of normal loan contracts, swap payments can be netted across more than on contract and Interest rate swaps involve interest, but not principal.

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Definitions:

Housing Assistance

Programs or services designed to help individuals or families afford or access suitable living accommodations, which may include subsidies, vouchers, or support services.

Stagnating Incomes

A financial condition where wages or earnings remain constant over time without significant growth, affecting living standards.

Rising Housing Costs

An increase in the price of purchasing or renting homes, often making housing unaffordable for many individuals and families.

Racial Inequality

The unequal treatment or disparities experienced by individuals or groups based on race, affecting opportunities, rights, and well-being.