A __________ Is a Privately Negotiated Contract That Protects Investors

question 2

Multiple Choice

A __________ is a privately negotiated contract that protects investors against the risk of default on particular debt securities such as mortgage-backed securities.

• A)default insurance contract
• B)default risk swap
• C)credit default swap
• D)collateralized debt obligation

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Definitions:

Improved Technology

Advances or enhancements in technology that lead to better efficiency, productivity, or outcomes in various fields.

Quantities Supplied

The amounts of goods or services that producers are willing and able to sell at various prices over a certain time period.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to a balance in the market.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where supply and demand are balanced.