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NEW QUESTION: 1
When using the Tester, what is the correct way to specify a FlowLimit of 10?
A. remotely connect the designer to the deployed engine with FlowLimit set to 10
B. reference a text file with the entry FlowLimit.*=10 from the Advanced tab of the Tester
C. add <option>FlowLimit</option><value>10</value> to the bwengine.xml file
D. click on the Advanced tab of the Tester and enter a value of 10
Answer: B
NEW QUESTION: 2
Which two options are valid WAN connectivity methods? (Choose two.)
A. Ethernet
B. DSL
C. L2TPv3
D. WAP
E. PPP
Answer: B,E
Explanation:
Explanation/Reference:
Explanation:
On each WAN connection, data is encapsulated into frames before it crosses the WAN link. The following
are typical WAN protocols:1. High-level Data Link Control (HDLC): The Cisco default encapsulation type
on point-to-point connections, dedicated links, and circuit-switches connections.2. PPP: Provides router-to-
router and host-to-network connections over synchronous and asynchronous circuits. PPP was designed
to work with several network layer protocols, including IP.3. Frame-relay: A successor to X.25. This
protocol is an industry-standard, switchesdata-link layer protocol that handles multiple virtual circuits.
Reference:
http://en.wikipedia.org/wiki/Wide_area_network
http://www.ciscopress.com/articles/article.asp?p=102157&seqNum=2
NEW QUESTION: 3
Which of the following statements are true:
I. A credit default swap provides exposure to credit risk alone and none to credit spreads II. A CDS contract provides exposure to default risk and credit spreads III. A TRS can be used as a funding source by the party paying LIBOR or other floating rate IV. A CLN is an unfunded security for getting exposure to credit risk
A. II and III
B. I, III and IV
C. II and IV
D. II, III and IV
Answer: A
Explanation:
Explanation
A CDS contract provides exposure to default risk and the credit spread for a particular credit. It does not provide an exposure to the risk of interest rates going up or down. It is an instrument that allows institutions to take a view on the price of credit risk alone. Therefore statement I is false and statement II is true.
A total return swap (TRS) exchanges the return from an asset for a fixed or floating exchange rate. It is in essence a financing arrangement where one party pays the other interest to earn a return on an asset that it does not wish to hold itself, perhaps for liquidity reasons. The financed asset is held by the party paying the asset's returns, effectively creating a 'collateral'. Therefore statement III is correct.
A credit linked note is a funded instrument where the sellers of the protection have put up the money upfront in the form of a subscription to a note in case the credit losses are realized. Therefore statement IV is not correct.