In a Basket Credit Default Swap, There Are Multiple Reference

question 12

True/False

In a basket credit default swap, there are multiple reference entities with the trigger determining when the protection buyer must make a payment to the protection seller being based on the number of reference entities that must default.

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Definitions:

Arranged

Organized or set out in a particular way, often referring to the systematic organization of elements within a system.

Master/Slave Polling Protocol

A master/slave polling protocol is a communications protocol where a "master" device or system queries ("polls") one or more "slave" devices, controlling when they transmit data.

Direct Communication

A form of communication where devices or systems interact with each other directly without intermediary devices or systems.