A Credit Default Swap Means

question 73

Multiple Choice

A credit default swap means:

• A) initial payment of a periodic premium by the buyer of a credit default swap.
• B) the buyer of a credit default swap obtains protection against credit risk exposures associated with specified debt issues.
• C) if the specified debt issuer defaults then the credit default swap protection seller assumes the risk.
• D) all of the given answers are correct.

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Definitions:

Thrombus

A blood clot that forms in a vessel and remains there, which can obstruct blood flow through the circulatory system.

Embolus

A blood clot, air bubble, or other substance that is carried in the bloodstream and can block blood vessels.

Immune Response

The body's defensive reaction to foreign substances, including microbes and pathogens, involving recognition and response.

Embolus

A blood clot, air bubble, piece of fatty deposit, or other object that has been carried in the bloodstream to lodge in a vessel and cause an embolism.