A Credit Default Swap

question 38

Multiple Choice

A credit default swap

• A)Is what happens when homeowners swap their mortgages with their neighbors
• B)Is a way for investors in collateralized debt obligations (or CDO's)to make even more money
• C)Is a way for investors in collateralized debt obligations (or CDO's)to reduce the risk of an increase in mortgage foreclosures
• D)Is a way for investors to increase the risks to homeowners
• E)Exists only in markets with subprime mortgages

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Definitions:

Survivor Resiliency

The ability of individuals who have experienced traumatic events to recover, adapt, and show strength in the face of adversity.

Compulsive Acts

Behaviors that a person feels compelled to perform repeatedly, often as a way of relieving anxiety or stress, characteristic of certain mental disorders such as OCD.

Humanistic Perspective

A psychological approach that emphasizes personal growth, self-awareness, and the capacity for self-healing as fundamental aspects of a person's behavior.

Learning Perspective

A psychological viewpoint that emphasizes the effects of experience on behavior, focusing on how individuals learn and adapt through their interactions with the environment.