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Gennadij [26K]
3 years ago
15

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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If the required reserve ratio is 10% and the fed conducts an open market purchase of $100, what is the maximum possible change i
PSYCHO15rus [73]

The maximum possible change in the money supply would be $1,000.

<h3>An open market notion is what?</h3>

A system of commerce that is open to free-market activity has few to no restrictions on it. An open market is one that doesn't have any tariffs, taxes, licensing requirements, subsidies, unionization, or other rules or behaviors that obstruct the operation of the free market.

<h3>What do open market operations aim to achieve?</h3>

The goal of open market operations is to alter the reserve balances of American banks and trigger retaliatory changes to the current interest rates. The Fed can boost the amount of money in the country by purchasing securities.

To know more about open market visit:

brainly.com/question/28290429

#SPJ4

3 0
1 year ago
Larry wants to hold an event that covers Dual Special Needs Plans (SNP). He will use the slide presentation provided by UnitedHe
Darina [25.2K]

Answer:

Not marketing sales event informal

Explanation:

Since Larry wants to hold an event that covers Dual Special Needs Plans (SNP) which are Medicare Plans that intend to help limit membership as well as helpntailor to people with a specific diseases in which he will be using slide presentation that was provided by United Healthcare to help explain the plan benefits and as well help the consumers to complete their enrollment applications at the end this means that the type of event that Larry need to conduct will be NOT MARKETING SALES EVENT INFORMAL reason been that United Health care enables people or individual to gain access to the services that address the most important and significant causes of disease and death in which they as well ensures that all the quality of the services they rendered is good enough to help improve the health and vitality of the people who receive their services.

5 0
3 years ago
3. What are you doing to maxiumize your profits at this time?​
Zanzabum

Answer:

investing

Explanation:

it is good to invest your money in things that you know will be of greater value in the future. For example, "Apple statistics" states that If you had bought $1,000 worth of Apple shares on January 9, 2007, the day Steve Jobs unveiled the original iPhone at MacWorld 2007, your investment would now be worth $26,103.

8 0
4 years ago
Read 2 more answers
XYZ has a current market price of $30.00 per share with earnings last year of $2.50 per share, a beta of 1.1 and a dividend of $
Nutka1998 [239]

Answer:

The expected price for the stock is $36

Explanation:

The price earning multiple is a measure that provides the information regarding how much are the investors willing to pay for each $1 of earnings per share. The formula for price earnings multiple is,

P/E = Price per share / Earnings per share

Based on the information, the P/E multiple for XYZ is,

P/E = 30 / 2.5   =  12

Using this price / earnings multiplier, we calculate the price at which the stock will trade as,

12 = Price per share / 3

12 * 3 = Price per share

Price per share = $36

8 0
3 years ago
Carlos opens a dry cleaning store during the year. He invests $30,000 of his own money and borrows $60,000 from a local bank. He
saw5 [17]

Answer:

How much of the loss can Carlos deduct if the loan from the bank is non-recourse?<u> No deduction because he is not personally liable for debt or loan used in the trade that holds real property.</u>

How much does Carlos have at risk at the end of the first year? <u>$30000</u>

7 0
3 years ago
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