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Which of the Following Statements Is NOT Correct? Credit Swaps

Question 47

Multiple Choice

Which of the following statements is NOT correct? Credit swaps bought by a bank


A) are credit derivatives.
B) are off- bank balance sheet activities.
C) help the bank protect itself against interest rate risk.
D) require a regular payment to the seller in order to have the seller paying the bank if the borrower on a loan defaults.

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