Which of the Following Is Not a Reason for the Credit

question 68

Multiple Choice

Which of the following is not a reason for the credit risk on a swap to be less than the credit risk on a loan?

• A)Swap contracts often extend beyond the maturity of normal loan contracts.
• B)Swap payments can be netted across more than on contract.
• C)Interest rate swaps involve interest, but not principal.
• D)Swap contracts often extend beyond the maturity of normal loan contracts, swap payments can be netted across more than on contract and interest rate swaps involve interest, but not principal.

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Definitions:

Infertility

The inability to conceive a child after trying for an extended period of time.

Amniocentesis

A procedure for drawing out and examining fetal cells sloughed off into amniotic fluid to determine whether various disorders are present.

Ultrasound

A medical imaging technique that uses high-frequency sound waves to create images of organs and structures inside the body, commonly used in pregnancy.

CVS

Chorionic Villus Sampling, a prenatal test where a sample of chorionic villi is taken from the placenta for genetic testing.