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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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