A ________ pays out cash flows from a collection of assets in different tranches, with the highest.

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A collateralized debt obligation (CDO) pays out cash flows from a collection of assets in different tranches, with the highest.

Structured asset-backed security (CDO) is a type of collateralized debt obligation (CDO). CDOs were initially designed as corporate debt market instruments, but from 2002 they were used to refinance mortgage-backed securities. A CDO can be viewed as a promise to pay investors in a specified order based on the cash flow it receives from the pool of bonds or other assets it holds, similar to other private label securities backed by assets.

In contrast, the probability of default (PD) for CDOs is often calculated using bond or asset ratings. A pool of loans and other assets serves as the collateral for the intricately designed financial product known as a collateralized debt obligation.

If the loan defaults, the underlying assets act as collateral. CDOs are a practical tool for transferring risk and freeing up resources while being risky and not suitable for all investors.

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The ________ states that the opportunity cost of producing a good always rises as one produces more of it. group of answer choic

quester [9]

The law of increasing relative cost states that the opportunity cost of producing a good always rises as one produces more of it.

According to the law of increasing costs, production eventually loses efficiency as it grows. The labor expenses for each additional item will increase, for instance, if increased production requires overtime work from your workforce.

Opportunity cost is the value of other commodities or services you must forgo in order to get your desired item. The term "cost" as used by economists often refers to opportunity cost. Cost is frequently mentioned in conversations or on the news.

According to the law of increasing opportunity cost, the cost of manufacturing the next unit rises as you keep up with the production of a given good.

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1 year ago

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2 years ago

Select the correct answer.

UkoKoshka [18]