A funding component is O the total funding required for a specified decision point O a long-term source of capital O a collateral agreement, such as pledging an asset as security for a mortgage bond O an ancillary requirement on a loan that affects its risk, such as a restrictive covenant

Q: A unit investment trust (uit) is unmanaged pool of investment that is often composed of

A: UIT (UNIT INVESTMENT TRUST) : is a exchanged traded mutual fund offering fixed portfolio of…

Q: Distinguish between a debt security and an equity security.

A: Debt Security:    Debt security refers to a financial instrument that is issued by the organization…

Q: 7. Which of the following is not one of the factors impacting the borrowing rate of repo assets? OA…

A: The factor that is not one of the factors impacting the borrowing rate of repo assets is:D.…

Q: Explain how to account for the impairment of an available-for-sale debt investment.

A: Debt Investment:   A debt investment involves loaning out the money to an institution in exchange…

Q: Equity financing is the borrowed funds from outside sources like loans, bonds and mortgages. True or…

A: Corporate finance is referred as the decision of the firm to take capital investments and other…

Q: What evidence is necessary to demonstrate the ability toconsummate the refinancing of short-term…

A:

Q: Explain the meaning of asset and liability management through the Pool Fund Approach.

A: Asset/liability management is the technique of controlling the use of assets and cash flows in order…

Q: If Valuation Allowance for Available-for-Sale Investments has a credit balance, how is it treated on…

A: Available-for-sales securities: These are short-term or long-term investments in debt and equity…

Q: All are items that can minimise credit risk, except. Guarantor  Mortagage Collateral  Pledge

A: The chance of a loss stemming from a borrower's failure to repay a loan or satisfy contractual…

Q: Why a particular fund out of which reimbursement is to be made, makes the instrument unconditional

A: The question is based on the concept of negotiable instruments. A negotiable instrument is a legal…

Q: How is Collateralized debt obligation created. Plelase explain in details

A: Collateralized debt obligation (CDO): Collateralized debt obligation (CDO) is the bundle of loans…

Q: ch of the following loan types has a beginning loan balance equal to the ending loan balance? Group…

A: Loans are kind of debt and burden and that carry the interest to be paid but when interest is to be…

Q: What is the arrangement that an SMSF must use for borrowing?

A: Self Managed Super funds (SMSF) are the superannuation trusts. These trust provides benefits to the…

Q: Collateral may mean the acquisition of rights over either assets belonging to a borrower and/or the…

A: Collateral is a financial concept that involves using assets as a form of security in lending and…

Q: b. Is it possible to measure the delivery of a service (e.g. a mortgage application) against a set…

A: SOLUTION- Here are  practical techniques and metrics for measuring your Delivery service quality.

Q: Interest revenue for debt investments at fair value through other comprehensive income is computed…

A: When the debt instruments are bought at off market terms, such instruments are measured at their…

Q: The study relating to the procurement of funds and its productive utilization is: O Finance O…

A: Finance is a broad category that includes various activities, such as investment, banking,…

Q: Differentiate equity financing from debt financing.

A: Finance is the term used for funding, raising or investing in the various business activities. For a…

Q: When one examines a REIT investment, why it is important to consider the terms of the company’s…

A: REIT stands for Real Estate Investment Trust. It manages and operates properties that generate gain…

Q: the event of difficulty in recovering the funds advanced, claim the monies back from the borrower,…

A: A loan is an instrument which is used to raise money. So a borrower can raise money at a defined…

Q: What can be considered collateral. What is collateral

A: Collateral is an asset or property that a borrower pledges as security for a loan or credit. If the…

Q: Why would lenders, in general, tend to set loan maturities (not amortization, but when the loan…

A: Loan Maturity: The time period for which a loan is extended is known as the loan period.  The date…

Q: Discuss in brief the types of collateralized debt Obligation. Please explain in details.

A: Solution-  Collateral Debt Obligation [CDO] is a sophisticated project financing outcome that's also…

Q: Operational risk is included in the regulatory capital requirement calculation of which of the…

A: The second Basel Accord, out of the three, is Basel II. Its foundation is made out of three primary…

Q: What is the structure of Collateralized debt obligation. Please explain in details

A: A collateralized debt obligation also known as CDO is a complex structured credit product which is…

Q: The capitalization rate used to determine the capitalizable borrowing cost should be disclosed.…

A: It is pertinent to note that as per IAS 23 borrowing costs incurred for acquisition, construction of…

Q: State the disadvantages of long-term debt financing.

A: Long term debt refers to the debt that has a maturity period of more than 1 year.They are also…

Q: Describe the basic methods of debt financing?

A: Every company has two major types of financing one is through raising equity shares and the other is…

Q: Explain Collateralized mortgage obligations (CMOs)?

A: Collateralized mortgage obligation is referred to as complex debt security  that directs the…

Q: how FHA buydown loans are structured?

A: Buydown loan is a type of loan in which lower interest rate is charged to the buyer. In such type…

Q: Differentiate the following investments by determining its advantage or disadvantage.  Savings…

A: The savings account provides interest on the money held in the account. The money can be easily…

Q: Concept Integration. Review the definitions of current and fixed assets in Chapter 17 (see page…

A: Those assets which a company expects to be converted into cash in a year or an operating cycle are…

Q: Describe the terms of  Contingent Liabilities with examples.

A: Contingent liability: This is an uncertain obligation that might be incurred on a future date as a…

Q: Is Collateralized debt obligation a good investment? Please explain in details.

A: A collateralized debt obligation also known as a CDO is a complex structured credit product which is…

Q: Which current liability represent a free source of financing?

A: The external sources are used for the source of financing. Financing implies cash added to the…

Liquidity Risk Exposure

Answer: c