If One Party Pays a Fixed Fee on a Regular

question 67

Multiple Choice

If one party pays a fixed fee on a regular basis in return for a contingent payment that is triggered by a downgrading of a firm's credit rating,that is called a

• A)credit option.
• B)credit swap.
• C)credit-linked note.
• D)credit default swap.

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Definitions:

Bridge

A structure built to span physical obstacles without closing the way underneath, such as a body of water, valley, or road, for the purpose of providing passage.

Erection

The process by which erectile tissue fills with blood and becomes firm, typically in response to sexual arousal.

Spinal Reflex

An automatic response controlled by the spinal cord without conscious brain involvement.

Sympathetic Nervous System

The sympathetic nervous system is a part of the autonomic nervous system that prepares the body for physical activity by accelerating the heart rate, constricting blood vessels, and raising blood pressure.