19. Recently, the regular collateralized debt obligations (CDO) market has been surpassed by:

A. credit swaps.

B. credit options.

C. credit-default swaps.

D. total-return swaps.

E. synthetic collateralized debt obligations.

20. According to research, off-balance-sheet standby credit letters reduce risk by:

A. increasing the diversification of assets.

B. reducing the need for documentation.

C. reducing probability of losses.

D. avoiding capital requirements.

E. increasing concentration of risk exposure