A Credit default swap is classified as:
A)an exchange-traded transaction.
B)an over-the-counter transaction.
C)money market transaction.
D)options exchange market.

Question

Quizplus · Accepted Answer

Credit default swaps are typically traded as over-the-counter (OTC) derivatives, rather than being exchange-traded. OTC derivatives are financial contracts that are traded directly between two parties or through a dealer network, rather than on a centralized exchange.

A Credit Default Swap Is Classified As