Credit Default Swaps ________

question 88

Multiple Choice

Credit default swaps ________.

• A) provide payments to holders of bonds if they default
• B) decrease asymmetric information in the mortgage markets
• C) had strong incentives to make sure CDO holders would be paid off
• D) were only a small part of insurance companies portfolios

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Definitions:

Legal Fees

Charges imposed by lawyers or law firms for services provided or to be provided.

Small Claims Court

Small Claims Court is a type of court designed to resolve disputes involving relatively small financial amounts in a simplified and less formal setting.

Limitation Period

The maximum time after an event within which legal proceedings may be initiated.

Ontario Court of Appeal

The highest court in the province of Ontario, Canada, which hears appeals from lower courts and has the authority to overturn their decisions.