Which of the following statements concerning credit default swaps is FALSE?
A) As of year-end 2008, CDSs are completely outside of regulatory boundaries.
B) A CDS is a derivative security that may be used for hedging risk or for speculative purposes.
C) In order be a party to a CDO, at least one of either the buyer or seller must own the underlying asset.
D) CDSs allow banks to severe their links to their borrowers, thereby reducing their incentive to screen and monitor the ability of borrowers to repay.
Correct Answer:
Verified
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A)auto
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