Explain how LTCM minimized its use of equity
What will be an ideal response?
LTCM conserved equity by avoiding directional positions that required purchasing the underlier. Equity was used to pay margin, collateral, and haircuts on LTCM's leveraged exchange-traded and OTC-traded derivative deals. Some equity was maintained to finance unexpected, unfavorable price movements.
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Which piece of legislation first established the U.S. federal minimum wage?
A. Wagner Act B. Social Security Act C. Fair Labor Standards Act D. Occupational Safety and Health Act E. Civil Rights Act
Roger Ray runs a motel in a rented property and sublets a part of its garage to the owner of a nearby fuel station. Three months later, the motel catches fire from a fuel leak in the garage and Roger suffers severe damages
If Roger owns a standard fire insurance policy for years, the insurer can use the ________ to refuse covering the damage caused by the fire. A) deductible clause B) exclusions from coverage clause C) incontestability clause D) copay clause
A subsidiary is considered a separate legal entity from its parent company
Indicate whether the statement is true or false
Explain the concept of strict liability and give two early examples of when this concept was applied in the U.S