Issuing a ________ Is the Same as Providing Insurance on the Debt

question 52

Multiple Choice

Issuing a ________ is the same as providing insurance on the debt instrument because, just like insurance, it makes a payment to the holder when there is a negative credit event.

• A)debit note
• B)debit-default swap
• C)credit-default swap
• D)credit note

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Definitions:

Productivity Growth

An increase in the efficiency of production, often measured as the increase in output per unit of input over time.

Computers

Electronic devices that are capable of executing a series of arithmetic or logical operations.

U.S. Investment Spending

Money expended on capital goods in the United States, which includes expenditures on equipment, infrastructures, and buildings.

Computing Technology

The branch of technology that encompasses computers and their software, hardware, and networking capabilities.