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Which of the Below Statements Is FALSE

Question 13

Multiple Choice

Which of the below statements is FALSE?


A) The reason why restructuring is so trouble-free is that a protection buyer benefits from the inclusion of restructuring as a credit event and feels that eliminating restructuring as a credit event will erode its credit protection.
B) If the reference obligation is a loan and the protection buyer is the lender, a benefit is that the protection buyer receives a payment from the protection seller.
C) If the reference obligation is a loan and the protection buyer is the lender, a benefit is that the accommodating restructuring fosters a relationship between the lender and its customer.
D) As the credit derivatives market developed, market participants learned a great deal about how to better define credit events.

Correct Answer:

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