In the practical use of credit default swaps there:
A) is not an organized exchange or template for the agreement.
B) is an organized exchange or template for the agreement.
C) are laws making them illegal in Canada.
D) are limits to the amount of borrowing of both parties.

Question

Quizplus · Accepted Answer

Credit default swaps are privately negotiated contracts between two parties, therefore there is no organized exchange or standard template for the agreement. Each contract can be customized to fit the specific needs of the parties involved. However, these contracts are subject to regulations and laws regarding their use and trading. While credit default swaps are not illegal in Canada, there are regulations in place to ensure their proper use. There are also no limits to the amount of borrowing of both parties, as the size of the contract is determined by the parties involved in the agreement.

In the Practical Use of Credit Default Swaps There