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NEW QUESTION: 1
What does correlation between two variables measure?
A. Association between the two variables and the strength of a possible statistical relationship.
B. The proportion of variability in one of the variables that is explained by the other.
C. Extreme returns of both variables.
D. Symmetry of a joint distribution of the two variables.
Answer: A
NEW QUESTION: 2
An installment for $2,000 is due for payment on July 31, 2012. The Installment has two discounts: the first discount date is June 15, 2012, for $150 and the second discount date is June 30, 2012 for $100.
You submit a payment process request:
-Payment Date = June 20, 2012 -Pay Through Date = July 30, 2011 -Date Basis = Due date
What will be the resulting status of the installment and discount?
A. The installment is selected and a discount of $150 is availed.
B. The installment is NOT selected because the discount dates are before the Pay Through Date.
C. The installment is, selected and a discount of $100 is availed.
D. The installment is NOT selected because the due date is later than the Pay Through Date.
E. The installment is selected and no discount is availed.
Answer: E
Explanation:
Similar example: An installment for 3,000 USD is due for payment on March 31, 2011. The installment has two discounts. The first discount date is February 15, 2011, for 150 USD. The second discount date is February 28, 2011, for 100 USD.
You submit a payment process request with the following data:
Payment Date = February 8, 2011 Pay Through Date = March 30, 2011 Date Basis = Due date The installment is not selected for payment because the installment due date of March 31, 2011, is later than the Pay Through Date of March 30, 2011. The Pay Through Date determines the installment selection
Reference: Fusion Applications help, Date Basis in Payment Process Requests: Example
NEW QUESTION: 3
ThetaBank has extended substantial financing to two mortgage companies, which these mortgage lenders use to finance their own lending. Individually, each of the mortgage companies has an exposure at default (EAD) of $20 million, with a loss given default (LGD) of 100%, and a probability of default of 10%. ThetaBank's risk department predicts the joint probability of default at 5%. If the default risk of these mortgage companies were modeled as independent risks, what would be the probability of a cumulative $40 million loss from
these two mortgage borrowers?
A. 1%
B. 10%
C. 0.01%
D. 0.1%
Answer: A
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