CFA Practice Question

There are 252 practice questions for this study session.

CFA Practice Question

Proponents of naked CDS argue that:

I. They bring liquidity to the credit market.
II. They provide more stability in the credit market.
III. They can be used to hedge against adverse economic conditions because even if an investor has no exposure to a borrower, the default of a sovereign entity or municipality imposes costs on investors.
Correct Answer: I, II and III

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