Which of the Following Best Describes a Credit Default Swap

question 51

Multiple Choice

Which of the following best describes a credit default swap?

• A)it is protected against default
• B)it has a higher rate to compensate for the possibility of one party defaulting
• C)it carries a higher credit rating than most other swaps
• D)it off if another party external to the swap defaults
• E)none of the above

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Definitions:

Skewed To The Right

A distribution where the tail on the right side of the histogram is longer or fatter than the left side, indicating that the majority of data points are concentrated to the left.

Incomes

The monetary payment received for work or through investments.

Large Firms

Businesses or corporations that operate on a large scale in terms of revenue, employees, or market presence, often influential in their industries.

Stacked Bar Chart

A graphical representation of data where different categories are stacked on top of each other within bars, showing the total and the composition of the total.