Credit Default Swap Is Classified As

question 30

Multiple Choice

Credit default swap is classified as:

• A) an exchange-traded transaction.
• B) an over-the-counter transaction.
• C) none of the above.

---

Definitions:

Maximizing Profit

It refers to the process whereby businesses aim to increase their earnings to the highest possible level by optimizing their operations and resource utilization.

Competitive Price-Searcher

A market participant who sets prices based on the prices of competitors, often in markets with differentiated products.

Demand Conditions

Factors that affect the willingness and ability of consumers to purchase goods and services at various prices.

Economic Profit

The total revenue of a firm minus its explicit and implicit costs, representing the surplus income over and above what is needed to keep its resources in their next best alternative use.