A Digital Default Swap Is a Contract That Is Distinct

question 29

Multiple Choice

A digital default swap is a contract that is distinct from a credit default swap in that

• A) It pays nothing is no credit event occurs.
• B) It pays a fixed amount if a credit event occurs.
• C) It has a single premium upfront instead of periodic premium payments.
• D) Premium payments are only due if a credit event occurs.

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Definitions:

Culturally Relative

The understanding that beliefs, values, norms, and practices should be evaluated in the context of the specific culture from which they originate, rather than judged against the standards of another culture.

Western Societies

Refers to societies that are historically influenced by European cultures, particularly in aspects such as legal systems, economies, philosophies, and overall cultural practices.

Biologically Determined

Pertains to traits, behaviors, or conditions that are influenced by genetic makeup rather than environmental factors or personal choice.

Socialized Medicine Theory

A healthcare system where the government owns and operates healthcare facilities and providers are government employees.