336 #
© 2014 Pearson Canada Inc.#20 ) Reinsurance ____.
A) is additional insurance to the insurance owned by a person
B) is insurance for the insurance company
C) is a rebate on the premium
D) None of the above
Answer: B
Diff: 1 Type: MC Page Ref: 273
Skill: Recall
Objective List: 12.1 Identify the important aspects of the insurance industry
Issuing a ____ is the same as providing insurance on the debt instrument because, just
like insurance, it makes a payment to the holder when there is a negative credit event.
A) debit note
B) debit-default swap
C) credit-default swap
D) credit note
Answer: C
Diff: 1 Type: MC Page Ref: 273
Skill: Recall
Objective List: 12.1 Identify the important aspects of the insurance industry
The only insurance companies that are allowed to provide insurance that guarantees the
timely repayment of bond principal and interest when a debt issuer defaults are ____.
A) monoline insurance companies
B) bond insurance companies
C) debt insurance companies
D) credit insurance companies
Answer: A
Diff: 1 Type: MC Page Ref: 273
Skill: Recall
Objective List: 12.1 Identify the important aspects of the insurance industry
The Greek debt crisis increased ____.
A) credit default swap spreads
B) the value of eurodollar accounts
C) the credit rating of Greek corporations
D) the TSE index
Answer: A
Diff: 1 Type: MC Page Ref: 274
Skill: Recall
Objective List: 12.1 Identify the important aspects of the insurance industry