A Digital Default Swap Is a Contract That Is Distinct

question 23

Multiple Choice

A digital default swap is a contract that is distinct from a credit default swap in that

• A)It pays nothing is no credit event occurs.
• B)It pays a fixed amount if a credit event occurs.
• C)It has a single premium upfront instead of periodic premium payments.
• D)Premium payments are only due if a credit event occurs.

Comprehend the nature-nurture debate in human development.

Appreciate the impact of environmental factors on development.

Grasp the concept of replication in the science of human development.

Understand the influence of genetic factors on human development.

---

Definitions:

Average Variable Cost

The variable cost per unit of output.

Average Variable Cost

The variable costs associated with production, when divided by the number of units produced, indicate the cost per unit.

Marginal Cost

The cost of producing one additional unit of a good or service, an important concept in economics for determining the optimal level of production.

Average Total Cost

The total cost to produce a given quantity of output divided by the quantity of output produced; it includes all opportunity costs.