Leading up to the market meltdown of 2008,investors that purchased mortgage-backed securities (MBSs)also bought ________ to transfer the risk of those securities to someone else,in case those MBSs failed.

Question

Quizplus · Accepted Answer

A)To protect themselves against default risk, investors who bought MBSs could buy credit default swaps to transfer that risk to somebody else. By the peak of the housing bubble, $45 trillion was invested in swaps, an amount approaching the output of the entire global economy.
B)To protect themselves against default risk, investors who bought MBSs could buy credit default swaps to transfer that risk to somebody else. By the peak of the housing bubble, $45 trillion was invested in swaps, an amount approaching the output of the entire global economy.
C)To protect themselves against default risk, investors who bought MBSs could buy credit default swaps to transfer that risk to somebody else. By the peak of the housing bubble, $45 trillion was invested in swaps, an amount approaching the output of the entire global economy.
D)To protect themselves against default risk, investors who bought MBSs could buy credit default swaps to transfer that risk to somebody else. By the peak of the housing bubble, $45 trillion was invested in swaps, an amount approaching the output of the entire global economy.
E)To protect themselves against default risk, investors who bought MBSs could buy credit default swaps to transfer that risk to somebody else. By the peak of the housing bubble, $45 trillion was invested in swaps, an amount approaching the output of the entire global economy.

Leading Up to the Market Meltdown of 2008,investors That Purchased