A Credit Default Swap (CDS) Is a Derivative Which Provides

question 13

True/False

A credit default swap (CDS) is a derivative which provides insurance against loss on a loan.

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Definitions:

Bicameral Legislature

A legislative body composed of two separate chambers or houses, typically a lower house and an upper house.

Proportional Representation

An electoral system in which the number of seats won by a party or group of candidates is proportionate to the number of votes received.

Senate Representation

In the context of the United States, this refers to the principle of equal representation in the Senate, where each state, regardless of its population size, is represented by two Senators.

Virginia Plan

was a proposal by Virginia delegates for a bicameral legislative branch in the United States, presented at the Constitutional Convention of 1787.