24-71 the Credit Risk on Swaps Is Considered to Be

question 45

Multiple Choice

24-71 The credit risk on swaps is considered to be

• A)more than the credit risk on loans.
• B)less than the credit risk on loans.
• C)same as the credit risk on loans.
• D)is negligible compared to the credit risk on loans.
• E)less likely to cause an FI to fail than is interest rate risk.

---

Definitions:

Weighted-Average Method

The costing technique for inventory that assesses the cost of goods sold and the final inventory by averaging the costs of all units on offer for sale during the time frame.

Molding Department

A specialized section in a manufacturing facility where molding processes, such as injection molding or compression molding, are carried out to produce parts or components.

Work in Process

Items in production that are not yet completed; a part of inventory.

Molding Department

A production sector within a manufacturing facility where raw materials are shaped into components or products using molds.