13-75 Which of the Following Statements Best Describe a Derivative

question 23

Multiple Choice

13-75 Which of the following statements best describe a derivative contract?

• A)Contractual commitments to make a loan up to a stated amount at a given interest rate in the future.
• B)Contingent guarantees sold by an FI to underwrite the performance of the buyer of the guaranty.
• C)Agreement between two parties to exchange a standard quantity of an asset at a predetermined price at a specified date in the future.
• D)Trading in securities prior to their actual issue.
• E)Loans originated by an FI and then sold to other investors with recourse.

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Definitions:

Hypertension

A chronic medical condition characterized by elevated blood pressure, which increases the risk of heart disease, stroke, and other health issues.

Autoimmune Reaction

A response of the immune system where it mistakenly attacks the body's own tissues, mistaking them for harmful pathogens.

Gluten

The insoluble protein (prolamines) constituent of wheat and other grains; a mixture of gliadin, glutenin, and other proteins; believed to be an agent in celiac disease.

Clear Diet

A dietary regimen consisting only of transparent liquids and foods that turn into clear liquids at room temperature, often recommended before medical procedures.