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3 years ago

Define credit default swap.

Business

1 answer:

KATRIN_1 [288]3 years ago

3 0

Answer:

Credit Default Swap (CDS) is a financial swap agreement or contract that allows investors to swap their credit risk with the credit risks of other investors.

Explanation:

Credit Default Swap is the most common form of credit derivative. It guarantees against bond risk and work like insurance policies.

If a lender is afraid of not being paid by his or her borrower, the lender can buy a CDS from another investor to offset the risk. The buyer of the CDS is required to makes some payments to the seller and in turn receive the loan repayment if the initial borrower defaults.

Third parties that sell CDS are usually banks, insurance companies and hedge funds.

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Identify the possible reason or reasons for this stark difference between income inequality and consumption inequality. Intergen

Fudgin [204]

Answer:

The richest quintile has the ability to save a larger percentage of its income.
Individuals experiencing temporary fluctuations in their incomes are more likely to maintain moderate spending habits.

Explanation:

First part of this question reads:

In the United States, the richest quintile of the population receives 13 times as much income as the poorest quintile. However, the richest quintile only spends 4 times as much as the poorest quintile.

The richest quantile can afford to save more than the poorest quantile because they get enough income to manage their daily needs and then save. The poorest quantile on the other hand face a daily struggle and so have to spend all or most of their income to survive.

When the richer quantile goes through temporary fluctuations, they maintain moderate spending because they know it is temporary and so they keep saving. This is not the case for the poorer quantiles who have to spend according to their income - regardless of its fluctuating - to survive.

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3 years ago

Lawn maintenance is an alternative energy source career.<br> A. <br> True<br> B. <br> False

Rainbow [258]

Answer:

False

Explanation:

Lawn maintenance isn't

4 0

3 years ago

At the end of this section, the author provides links to self-assessments to help determine if an individual has what it takes t

LUCKY_DIMON [66]

Answer:

The correct answer is entrepreneurs are born, not made.

Explanation:

Entrepreneurs, social psychologists and economic theorists have speculated on whether entrepreneurs are born or made, in other words, if you are predisposed to become an entrepreneur because of your genetic constitution, or if that provision comes from your environment, conditioning or other external factor.

For most entrepreneurs, it is comforting to think that business men and women are made, that even if they lack the "right" DNA, practice, experience and sufficient conditioning to be a success.

6 0

3 years ago

On January 1, Year 1, Bryson Company obtained a $147,750, four-year, 7% installment note from Campbell Bank. The note requires a

Charra [1.4K]

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

1) The amortization schedule is presented on the attachment below:

2).

Journal Entry

1 Jan Cash A/c Dr. $147,750

To Notes payable A/c $147,750

(Being the cash received is recorded)

31 Dec Interest expense A/c Dr. $10,342.50

Notes payable A/c $33,277.50

To Cash A/c $43,620

(Being the annual payment of installment including interest is recorded)

31 Dec Interest expense A/c Dr. $8,013.08

Notes payable A/c $33,606.93

To Cash A/c $43,620

(Being the annual payment of installment including interest is recorded)

31 Dec Interest expense A/c Dr. $5,520.59

Notes payable A/c $38,099.41

To Cash A/c $43,620

(Being the annual payment of installment including interest is recorded)

31 Dec Interest expense A/c Dr. $2,853.83

Notes payable A/c $40,766.17

To Cash A/c $43,620

(Being the annual payment of installment including interest and setting off liabilities is recorded)

3).

Bryson Company

Income Statement

Particular Amount ($)

Revenue -

Expenses

Less - Interest expense 10,342.50

Less - Other expenses -

Net Income -

4 0

3 years ago

What is a balance sheet? How does it support business?

exis [7]

A balance sheet is a summary of all of your business assets (what the business owns) and liabilities (what the business owes). At any particular moment, it shows you how much money you would have left over if you sold all your assets and paid off all your debts (i.e. it also shows 'owner's equity').

6 0

2 years ago

Define credit default swap. ​

Define credit default swap.