One problem with credit default swaps (CDS) was that:
A) House prices rose.
B) Interest rates fell.
C) There was no regulation required.
D) There was positive equity.

Question

Quizplus · Accepted Answer

One problem with credit default swaps (CDS) was that there was no regulation required, leading to a lack of transparency and accountability in the market. This contributed to the financial crisis of 2008. The other choices are not relevant to the issue with CDS.

One Problem with Credit Default Swaps (CDS) Was That