Question 1
Which factors contributed to the housing crisis of 2006 to 2008?
Check all that apply:
ARMs with low teaser rates that reset during that time period
Tight monetary policy
Conflict of interest at the rating agencies
Relaxation of lending standards
Question 2
Which statements are true about the credit valuation adjustment (CVA)?
Check all that apply:
CVA is affected by netting.
CVA can be calculated, but it cannot be changed.
CVA should be calculated for each transaction.
CVA is easy to calculate.