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    Question

    "Credit Default Swap" (CDS) is a type

    of:
    A Deposit Scheme. Correct Answer Incorrect Answer
    B Credit Derivative used to hedge credit risk. Correct Answer Incorrect Answer
    C Loan given to small farmers. Correct Answer Incorrect Answer
    D Saving instrument for senior citizens. Correct Answer Incorrect Answer
    E Type of cheque. Correct Answer Incorrect Answer

    Solution

    A CDS is a financial swap agreement that the seller of the CDS will compensate the buyer in the event of a debt default.

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