The Payment of Any Compensation for Loss Is Contingent on the Actual

question 102

Multiple Choice

The payment of any compensation for loss is contingent on the actual occurrence of a credit-related event under a

• A) Total return swap.
• B) Credit default swap.
• C) Collar.
• D) Forward rate agreement.
• E) swap agreement.

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Definitions:

Merchant

A person or company involved in the trade of goods, services, or commodities for profit.

Sale

The passing of title from a seller to a buyer for a price.

Implied Warranty of Fitness

An assurance, typically not expressly stated, that a product will be suitable for its intended purpose.

Particular Purpose

A specific objective or requirement for which goods or services are intended or needed, as expressed in a contract.