A Credit Default Swap Is

question 65

Multiple Choice

A credit default swap is

• A) a fancy term for a low-risk bond.
• B) an insurance policy on the default risk of a federal government bond or loan.
• C) an insurance policy on the default risk of a corporate bond or loan.
• D) an insurance policy on the default risk of federal government and corporate bonds and loans.
• E) None of the options are correct.

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Definitions:

Case Studies

Research method involving the detailed examination of an individual case or cases, usually to understand or illustrate broader principles or practices.

Single Situations

Instances or occurrences that are unique or isolated in context.

Survey Studies

Research methods that involve collecting data from a sample of individuals through their responses to questions.

Field Studies

Research activities conducted in real-world settings outside of a laboratory or office, aiming to collect data in its natural environment.