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Exam CWM_LEVEL_2 All Questions
Exam CWM_LEVEL_2 All Questions

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AAFM Chartered Wealth Manager CWM_LEVEL_2 Question # 39 Topic 4 Discussion

CWM_LEVEL_2 Exam Topic 4 Question 39 Discussion:
Question #: 39
Topic #: 4

Section B (2 Mark)

A bank has a limited geographic area. It would like to diversify its loan income with loans in other market areas but does not want to actually make loans in those areas because of their limited experience in those areas. Which type of credit derivative contract would you most recommend for this situation?


A.

Credit linked note


B.

Credit risk option


C.

Total return swap


D.

Credit swap


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