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Basic Question 3 of 11
For the purpose of external credit enhancement, an investor would most likely pick a ______ to counter third-party risk.
B. letter of credit issued by a bank
C. bank guarantee
A. cash collateral account
B. letter of credit issued by a bank
C. bank guarantee
User Contributed Comments 1
| User | Comment |
|---|---|
| Inaganti6 | Cash > promise of cash |
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
describe typical credit enhancement structures used in securitizations
CFA® 2025 Level I Curriculum, Volume 4, Module 18.