________ are in essence an insurance contract against the default of one or more borrowers.
A)Credit default swaps
B)CMOs
C)ETFs
D)Collateralized debt obligations
E)all of the above.

Question

Quizplus · Accepted Answer

Credit default swaps are specifically designed to hedge against the default of one or more borrowers. CMOs and collateralized debt obligations are types of structured finance products, while ETFs are investment funds that track the performance of an index or commodity. Therefore, the correct answer is A) Credit default swaps.

________ Are in Essence an Insurance Contract Against the Default