Question

10. What does " break the buck" have to do with the canary in the coal mine? (early warning)

11. Who is Elizabeth Warren and how does she feel about big banks?

25. Describe the difference between default risk and risk of loss. Which seems more important?

Answer 1

10.Breaking the buck means NAV of a mutual fund going below $1.It is a warning signal so it is used with the term canary in the coal mines.

11. Elizabeth Warren was a senator and now a candidate for presidency in 2020 elections. She feels that large banks on wall street are vulnerable to failure and she wants to protect them

25. Default risk is the risk associated with default of repayment of interest or default or default of periodic repayment by the buyer

while, Credit risk is the risk associated with default of entire principal amount by the borrower

In My view, Credit risk is more important as it is a risk associated with default of higher amount.