A Credit Default Swap Is

question 67

Multiple Choice

A credit default swap is

• A)a fancy term for a low-risk bond.
• B)an insurance policy on the default risk of a federal government bond or loan.
• C)an insurance policy on the default risk of a corporate bond or loan.
• D)an insurance policy on the default risk of federal government and corporate bonds and loans.

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Definitions:

Schizophrenia

A chronic and severe mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

Catatonic Stupor

A state of unresponsiveness to the environment in which a person remains motionless and silent for long periods, often associated with schizophrenia or other psychiatric disorders.

Drapetomania

A discredited 19th-century hypothesis that purported to diagnose a mental illness causing enslaved Africans to flee captivity.

Psychologists

Professionals who study cognitive, emotional, and social processes and behavior by observing, interpreting, and recording how individuals relate to one another and to their environments.