________ are, in essence, an insurance contract against the default of one or more borrowers.
A)Credit default swaps
B)CMOs
C)ETFs
D)Collateralized debt obligations

Question

Quizplus · Accepted Answer

Credit default swaps provide protection to the investor against borrower defaults. They work like insurance contracts against the non-payment of debt obligations by one or more borrowers.

________ Are, in Essence, an Insurance Contract Against the Default