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    Question

    Which of the following is a financial derivative that

    allows an investor to swap or offset their credit risk with that of another investor?
    A Credit Invert swap Correct Answer Incorrect Answer
    B Credit default swap Correct Answer Incorrect Answer
    C Credit Debit swap Correct Answer Incorrect Answer
    D Credit Investment swap Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    A credit default swap (CDS) is a financial derivative that allows an investor to swap or offset their credit risk with that of another investor.

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