The following questions relate to credit card receivable-backed securities. Answer each one
What happens to the principal repaid by borrowers in a credit card receivable-backed security during the lockout period?
What will be an ideal response?
In contrast to an auto loan-backed security, the principal repayment of a credit card receivable-backed security is not amortized. Instead, for a specified period of time, referred to as the lockout period or revolving period, the principal payments made by credit card borrowers constituting the pool are retained by the trustee and reinvested in additional receivables. The lockout period can vary from
18 months to 10 years.
After the lockout period, the principal is no longer reinvested but paid to investors. This period is referred to as the principal-amortization period.
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Discuss an agent's duty to communicate information to the principal. When is this duty considered to be violated?
What will be an ideal response?
Use this inventory information for the month of August to answer the following question. Aug. 1 Beginning inventory 10 units @ $130 5 Purchase 60 units @ $122 14 Sale 40 units 21 Purchase 30 units @ $126 31 Sale 28 units Assuming that a perpetual inventory system is used, what is ending inventory (rounded) under the average-cost method?
A) $3,764 B) $3,826 C) $3,968 D) $3,986
Lauren decides to use Twitter to market her hand-painted scarves to other women on her campus. She sets up a Twitter account with the name @uniquedesignsbylauren and posts this on her Facebook page, making sure to tweet every few days. Soon Lauren is selling a lot of scarves. Lauren's Twitter account is an example of
A. thought sharing. B. microblogging. C. professional networking. D. media sharing. E. social bookmarking.
Which of the following is divided into portions, with each portion representing a different item, and with the size of the portion showing the proportion of that item to the whole?
a. a graph b. an annotated table of numbers c. a bar chart d. a pie chart e. a PERT diagram