The important feature of the credit default swaps (CDS) that caused financial losses at American International Group (AIG) in 2008 was that the CDS required AIG to make payments when:
A) houses financed by mortgage-backed securities went into foreclosure.
B) prices of mortgage-backed securities fell.
C) prices of mortgage-backed securities rose.
D) issuers of mortgage-backed securities defaulted.
Correct Answer:
Verified
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