13-23 Basis Risk Occurs on a Loan Commitment Because the Spread

question 102

True/False

13-23 Basis risk occurs on a loan commitment because the spread of a pricing index over the cost of funds may vary.

---

Definitions:

Orval Faubus

Governor of Arkansas from 1955 to 1967, known for his controversial stand against the desegregation of Little Rock Central High School in 1957.

Desegregation

The process of ending the separation of two or more groups based on race, ethnicity, or other discriminating factors, especially in relation to public schools, housing, and other public spaces.

Mahatma Gandhi

An Indian lawyer, anti-colonial nationalist, and political ethicist who employed nonviolent resistance to lead the successful campaign for India's independence from British Rule.

Civil Disobedience

The refusal to comply with certain laws or to pay taxes and fines, as a peaceful form of political protest.