Which of the Below Statements Is FALSE

question 40

Multiple Choice

Which of the below statements is FALSE?

• A) If a payout is triggered only after two reference obligations default, the swap is referred to as a first-to-default basket swap.
• B) Single-name credit default swaps can be used in the swap market by portfolio managers to leverage their position in a corporate bond.
• C) From the list of deliverable obligations, the protection buyer will select for delivery to the protection seller the cheapest-to-deliver issue.
• D) Since all reference entities that are the subject of credit default swaps have many issues outstanding, there will be a number of alternative issues of the reference entity that the protection buyer can deliver to the protection seller. These issues are known as deliverable obligations.

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Definitions:

Different Types of Fallacies

Refers to various recognized errors in reasoning or argument, often used to deceive or mislead.

Verbal Confrontation

A situation in which individuals engage in an exchange of words, often in a conflicting or argumentative manner.

Fallacies

Deceptive arguments that appear logical, but upon closer analysis, fail to demonstrate their conclusions.

Worthy of Acceptance

Deserving approval or endorsement.