Credit Default Swaps

question 121

Multiple Choice

Credit default swaps

• A) are a type of collateralized debt obligation.
• B) are a type of insurance against defaults.
• C) were accurately priced before the housing market collapsed.
• D) made AIG the most profitable company in the United States.

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Definitions:

Hypothalamus

A brain region controlling various bodily functions, including temperature, hunger, thirst, fatigue, sleep, and circadian cycles.

Suffix

An affix that is added at the end of a word to form a derivative or give it a particular grammatical function.

Hormone

Chemical substances produced in the body that regulate and control the activity of certain cells or organs.

Thyroid Scan

A nuclear medicine test that evaluates the function and structure of the thyroid gland using radioactive iodine or technetium.