The Dodd-Frank Bill Affected Derivatives By

question 207

Multiple Choice

The Dodd-Frank bill affected derivatives by:

• A)prohibiting them.
• B)requiring that the issuer guarantee 50% of the purchaser's investment.
• C)allowing them to be purchased and sold only by the Federal Reserve.
• D)requiring that they be traded in transparent markets.

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Definitions:

Equivalent Taxable Yield

The yield on a tax-exempt security that would be required to produce the same after-tax yield as a taxable security, given an investor's tax rate.

State Bond

Debt securities issued by a state government to finance its expenditures, offering a way for investors to lend money to the government in exchange for interest payments.

Buy-And-Hold

An investment strategy where securities are purchased and held for a long period to mitigate the effects of market volatility.

Equally Weighted

A type of investment strategy where each asset in a portfolio is given the same investment weight regardless of its size, market capitalization, or other characteristics.