A bank that wishes to reduce its credit risk could: A. Sell risky loans from its loan portfolio B. Enter into a repurchase agreement O. Buy a credit default swap O D. Sell a credit default swap O E. Both A and C will reduce credit risk
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- financial economics Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Secured loans are backed up with assets that the lender can claim in case of default. True or false ?Identify briefly five questions a money manager should ask before recommending suitable investments for a client
- Definition of the initial cash reserveWhich type of short-term loan is secured with Treasury bills as collateral? A. Commercial paper B. Repurchase agreements C. Certificates of deposit D. Federal fundsAllen would like to open a business to produce a software that he thinks would be well-received by the market. However, the investment needed to start a busi- ness is very high and Allen could barely cover it on his own. The software is very likely to be successful and generate profits, but it takes 2 years before profits are generated. Explain why the existence of a financial intermediary, like a bank, makes Allen’s investment more likely.
- What challenges faced by the financial services commission of JamaicaAn automobile is an asset, but it is not liquid because: a. The automobile may not be in good repair b. The owner may still be making payments on the loan c. The automobile cannot be sold without a loss in value d. The transactions costs for the used automobile market are highWhy might a firm prefer to borrow funds via a CP issuance rather than through a credit line?
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