CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

Which statement(s) is (are) correct about the equity investor in a VIE?

I. They are typically provided a small rate of return by the entity.
II. They usually contribute substantial resources to enable the VIE to secure additional financing needed.
III. The equity at risk is usually less than 10 percent of total assets.
A. I and II
B. I and III
C. II and III
Explanation: II is true for the other party - the primary beneficiary.

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