Use the following statements to answer this question:
A) I is correct, II is incorrect
B) I and II are correct
C) I and II are incorrect
D) I is incorrect, and II is correct
I.Credit default swaps (CDS)is a default premium on debt issue.
II.Credit default swaps (CDS)are insurance on the default of issuers of the debt.

Question

Quizplus · Accepted Answer

Statement I is incorrect as credit default swaps are not a default premium on debt issue. 
Statement II is correct as credit default swaps are indeed a type of insurance on the default of issuers of debt.

Use the Following Statements to Answer This Question