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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