40) If one party pays a fixed fee on a regular basis in return for a...

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40) If one party pays a fixed fee on a regular basis in return for a contingent payment that is triggered by a credit event,

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Answer 1

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ANSWER.(D) CREDIT DEFAULT SWAP.

EXPLAIN:: In this Swaps work like insurance policies.The payment is quarterly instead of monthly.They allow purchasers to buy protection against an unlikely but devastating event.

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