Regarding credit default swaps except

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Reference no: EM131450298

All of the following statements are true regarding credit default swaps except:

a. they are a type of insurance policy that can be purchased

b. when you buy a credit default swap, you're essentially betting that something will fail

c. AIG suffered from liquidity problems because they had issued so many credit default swaps related to mortgage backed securities

d. credit default swaps can be purchased as insurance policies to protect homeowners from foreclosure in the event of a default

Reference no: EM131450298

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