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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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