1. The Securities Act of 1933 focuses on:
A. all new and outstanding stock transactions.
B. the issuance of new securities.
C. the redemption of outstanding debt.
D. insider trading.
E. Federal Deposit Insurance Corporation (FDIC) insurance.
2. What is the purpose of a credit forward agreement?
To allow property-casualty insurers to hedge the extreme losses that occur after major catastrophes.
To adjust prices on outstanding futures each day to reflect current futures market conditions.
To facilitate the future exchange of an asset for cash at a price that is determined daily.
To hedge a cash asset on a direct dollar-for-dollar basis with a forward or futures contract.
To hedge against an increase in the default risk of a loan.