Financial Swaps MCQ Quiz - Multiple Choice Questions & Answers Page 3

21. Typically, parallel loans involve the following parties

1. two multinational firms
2. three multinational firms
3. two subsidiary firms
4. A and C

22. Which of the following is not part of the new Financial Accounting Standards Board and the Securities and Exchange Commission’s rules regarding off balance sheet transactions

1. all off balance sheet transactions must stop effective January 1, 2004.
2. the benefits of off balance sheet transactions must be reported.
3. companies are required to tell investors about the nature and purpose of off balance sheet transactions.
4. companies must add transactions to their balance sheet when they strand to absorb a majority of the expected benefits or losses from the bulk of expected returns.