Which of the following describes the waterfall typically used for mortgages pre-crisis? A: A distribution of cash flows to tranches with priority given to tranche with the highest rating B: A distribution of cash flows to tranches in proportion to their outstanding principals C: A distribution of losses to tranches so that tranches bear losses in proportion to their outstanding principals D: None of the above

Why is it easy to have credit-theft? A: More people are using credit service. B: The application program is not safe enough. C: Creditors usually disclose their identity. D: Creditors are not careful about their identity.

Generally, the holder of a government bond that is indexed to the price level knows A: either the interest rate, the principal, or both are adjusted for inflation B: the real interest rate will fluctuate with inflation C: there will be no losses as long as inflation is anticipated, but losses can occur if there is an unanticipated increase in the inflation rate D: all of the above E: none of the above

中国大学MOOC: Owners of bonds are bondholders, or creditors,of the issuer.

Liabilities are ______. A: money borrowed from banks B: money received from creditors C: "outsider claims", which are economic obligations, debts payable to outsiders D: notes receivable