During the most recent financial crisis, the FI segment that was most negatively affected by credit default swaps was
A)commercial banks.
B)insurance companies.
C)pension funds.
D)finance companies.
E)mutual funds.

Question

Quizplus · Accepted Answer

Insurance companies were most negatively affected by credit default swaps during the most recent financial crisis. This is because they frequently sold credit default swaps as a form of insurance on other companies' debt, leaving them exposed to significant losses when those debts defaulted.

During the Most Recent Financial Crisis, the FI Segment That