tanyiawilliams5701 tanyiawilliams5701

28-01-2022
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A bank purchased a credit default swap from another financial institution to protect itself against the default of one of its borrowers. In this example, the bank is:.

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lyanne0207 lyanne0207

29-01-2022

Answer: Hedging

Explanation: because the bank is hedging when it purchases a credit default swap that is offering protection against the default of one of its borrowers.

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