24-62 Which of the Following Is NOT a Reason That

question 61

Multiple Choice

24-62 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.
• E)None of the above.

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Definitions:

Electronic Payment

Electronic payment refers to a method of making transactions or paying for goods and services through electronic means over the internet, without the use of check or cash.

Wire Transfer

An electronic method of moving funds from one bank or credit institution to another, often used for large transactions.

Top-Level Domain

The highest level in the hierarchical Domain Name System of the Internet, after the root domain. Examples include .com, .org, and .net.

Mobile Devices

Portable electronic devices such as smartphones, tablets, and wearables that offer computing capabilities and connectivity on the go.