Use the Following Statements to Answer This Question

question 3

Multiple Choice

Use the following statements to answer this question:

• A) I is correct, II is incorrect
• B) I and II are correct
• C) I and II are incorrect
• D) I is incorrect, and II is correct
• I.Credit default swaps (CDS)is a default premium on debt issue.
• II.Credit default swaps (CDS)are insurance on the default of issuers of the debt.

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Definitions:

Profit Margin

A financial metric displaying the percentage of revenue that remains as profit after all expenses have been deducted.

Operating Expenses

Costs related to the day-to-day operations of a business, excluding the cost of goods sold, such as rent, utilities, and payroll.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly used to create the good.

Transfer Price

The cost at which divisions within the same organization trade goods and services with each other.