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NEW QUESTION: 1
A. Option C
B. Option E
C. Option B
D. Option D
E. Option A
Answer: A,D
NEW QUESTION: 2
A bank holding a basket of credit sensitive securities transfers these to a special purpose vehicle (SPV), which sells notes based on these securities to third party investors. Which of the following terms best describes this arrangement?
A. A collateralized debt obligation issuance
B. A credit default swap purchase
C. A synthetic CDO creation
D. n-th to default swap
Answer: A
Explanation:
Explanation
A traditional collateralized debt obligation (CDO) involves the complete transfer of securities to an SPV, which then issues notes or securities to investors. Therefore Choice 'd' is the correct answer.
A synthetic CDO achieves the same result as a traditional CDO, but uses credit derivatives to synthetically create the same economic effect as a traditional CDO.
A credit default swap is a derivative instrument that pays in the event of the occurrence of agreed credit events. The arrangement described in the question is not a credit default swap purchase. n-th to default swap arrangements are similar to CDSs, but on a portfolio with the first 'n' losses being covered by the swap.
NEW QUESTION: 3
Which of the following are characteristics of an LSP? (Choose two)
A. It provides a specific tunnel for a FEC through the network.
B. It is unidirectional.
C. It is bidirectional.
D. It must always have a secondary path.
E. It always follows the IGP best path.
Answer: A,B
NEW QUESTION: 4
What protocol does ping use?
A. ICMP
B. UDP
C. TCP
D. ARP
Answer: A