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LOS i, (Part 2): Illustrate how swap credit risk is reduced by both netting and marking to market.
Q1. Netting and marking to market are:
A) features of standardized futures contracts.
B) essentially the same thing.
C)ways to reduce the credit risk in swaps transactions.
Q2. Under a netting agreement swap, credit risk is:
A) reduced with respect to a counterparty bankruptcy.
B) reduced, except in the case of counterparty bankruptcy.
C) unaffected.
Q3. Credit risk in a swap can be reduced by all of the following EXCEPT:
A) marking to market when a trigger point is reached.
B) netting agreements.
C) increasing the floating rate to account for credit risk. | 
发表于 2009-4-2 09:56
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