Covered Bonds Are Issued By

question 34

Multiple Choice

Covered bonds are issued by:

• A)NBFIs and must have a pool of assets covering the bonds that meet 105% of the face value of the outstanding covered bonds
• B)depository institutions and must have a pool of assets covering the bonds that meet 105% of the face value of the outstanding covered bonds
• C)by depository institutions and must have a pool of assets covering the bonds that meet 100% of the face value of the outstanding covered bonds
• D)depository institutions and must have a pool of assets covering the bonds that meet 103% of the face value of the outstanding covered bonds

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Definitions:

Portfolio Investment

In international finance, investment in the securities of a foreign company or government.

French Company

A business entity that is registered and operates within France or is formed under French law.

Indirect Quote

An exchange rate expressed as the amount of foreign currency one unit of domestic currency can buy.

Direct Quote

An exchange rate presented as the local currency for each unit of the international currency.