Solved

Why Were Credit Default Swaps Initially Considered Low Risk

Question 6

Multiple Choice

Why were credit default swaps initially considered low risk?


A) Interest rates were low, which lowered the associated risk.
B) Credit default swaps were backed by the federal government.
C) Credit default swaps were backed by mortgage-backed securities.
D) Insurance companies could easily cover any losses, as they were backed mostly by bonds.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents